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Institutions Favor Solana Staking Over Ethereum Due to Higher Rewards and Flexible Terms
ByAinvest
Saturday, Aug 30, 2025 6:45 am ET1min read
Institutions are favoring Solana (SOL) staking over Ethereum (ETH) due to its higher staked supply rate (67% vs ETH's 30%), higher baseline staking reward (6.6% vs ETH's 2.8%), and more flexible staking terms, including no minimums and 2-3 day unlocks. This trend is driven by a surge in institutional adoption, with public companies holding significant SOL positions.
Institutional investors are increasingly favoring Solana (SOL) staking over Ethereum (ETH), driven by several key factors. According to on-chain data, Solana’s staked supply rate stands at 67%, compared to Ethereum’s 30% [3]. This substantial difference highlights a significant trend in institutional adoption.Solana’s baseline staking reward is notably higher at 6.6% compared to Ethereum’s 2.8% [3]. Additionally, Solana offers more flexible staking terms, including no minimum requirements and a 2-3 day unlock period. These features make Solana an attractive option for institutional investors seeking higher yields with less lock-up time.
The surge in institutional adoption of Solana is evident, with public companies amassing significant SOL positions. This trend is not only driven by the higher staking rewards but also by Solana’s high-performance blockchain platform, known for its scalability and low transaction fees [1]. The increased adoption by institutions is a testament to Solana’s growing credibility and potential.
Despite a recent price drop of nearly 6% on August 24, 2025, Solana’s fundamentals remain strong. The proposed $1 billion Solana treasury, backed by major crypto firms like Galaxy Digital, Jump Crypto, and Multicoin Capital, aims to stabilize SOL’s value and strengthen its position against Ethereum in the smart contract competition [1]. This initiative underscores Solana’s potential for long-term growth and institutional support.
In summary, the preference for Solana staking among institutions is a result of its higher staking rewards, flexible terms, and growing institutional adoption. As Solana continues to attract significant investment, its position in the cryptocurrency market is likely to strengthen.
References
[1] https://www.ainvest.com/news/solana-news-today-top-crypto-firms-raise-1-billion-buy-solana-tokens-2508/
[2] https://investinghaven.com/crypto-blockchain/coins/ethereum-vs-solana-whos-leading-the-altseason-rally/
[3] https://cryptorank.io/news/feed/448bf-solana-staking-vs-ethereum-why-sol-is-winning
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