As a seasoned crypto investor with a knack for spotting promising projects, I find Solana’s recent milestone and partnership announcements particularly intriguing. Having closely followed the growth of Ethereum’s staking ecosystem, it’s hard not to notice the parallels between its liquid staking journey and what Sonic SVM is embarking on.
The layer-2 blockchain called Sonic on the Solana network has achieved a notable staking achievement and is forging a fresh collaboration to stimulate the expanding re-staking sector within the Solana ecosystem.
The initial Solana-centric Level 2 scaling network, known as Sonic, has joined forces with the restaking platform Solayer and the liquid restaking layer Adrastea, aiming to boost the incentives for Solana delegators.
The partnership comes as Sonic SVM surpassed $50 million worth of Solana (SOL) staked delegation on Solayer, according to an announcement shared with CryptoMoon.
This makes Sonic SVM the largest delegated AVS (Actively Validated Service) on Solayer.
As a researcher exploring the realm of blockchain technology, I’m thrilled to note that the $50 million milestone underscores the expansive growth potential embedded within Solana’s staking and restaking ecosystem. This observation is echoed by Chris Zhu, the visionary founder and CEO at Sonic SVM, who shared this insight during his conversation with CryptoMoon.
“It highlights the growing sophistication and maturity of Solana’s decentralized services, like Sonic AVS, where liquid staking tokens now extend beyond basic staking to enhance security and value for a range of services including network extensions.”
Staking of liquid assets has become the most extensive category of protocols on Ethereum, with a combined value of approximately $44 billion in total value locked (TVL), while restaking is worth around $15 billion, making it the fifth largest category, as reported by DefiLlama.
Some individuals involved in building blockchain platforms anticipate that restaking and liquid staking solutions on the Solana network could experience a rapid surge of popularity similar to past growth patterns.
Can Solana restaking rival Ethereum’s growth?
According to Sonic’s Zhu, the re-staking feature built on the Solana platform may experience substantial expansion, even approaching the scale of Ethereum’s ecosystem.
According to Zhu’s statement, contributions from innovations in similar protocols such as Jito, Solayer, and Fragmetric could substantially enhance the restaking environment within the Solana network. Furthermore, he also mentioned that these advancements could potentially have a significant impact on the network.
“Solana is setting the stage for a future where its ecosystem is both highly decentralized and capable of managing more complex, high-stakes applications. This dynamic approach could propel Solana’s staking ecosystem into a central role, potentially exceeding Ethereum’s in versatility and adoption.”
Other people share the belief that this niche has significant growth potential. Bybit Research predicts that the adoption of Solana-based liquid staking could surge more than five times as a result of ongoing retail interest.
Bybit Research told CryptoMoon:
“In our view, Solana has a huge potential for liquid staking due to its active staking community. Based on Ethereum’s LST market statistics, Solana’s LST market could potentially grow to $18 billion.”
Solana-based liquid staking is worth $5.9 billion in TVL at publication, DefiLlama data shows.
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2024-11-01 16:47