Solana News Today: Institutions Shift to Solana: Staking Yields and RWA Growth Outpace Ethereum

The cryptocurrency market is witnessing a shift in institutional favor, with Solana (SOL) emerging as a standout performer in 2025, a trend underscored by Bitwise's four reasons why Solana is "smarter than average" for institutions, as Bitwise argues. Analysts and investors are increasingly positioning Solana as a superior alternative to Ethereum and other major blockchains, citing its robust staking yields, rapid growth in tokenized assets, and lower market capitalization as key advantages.

One of Solana's most compelling features is its staking efficiency. Over 81% of SOL tokens—worth approximately $51 billion—are staked, generating an annual yield of roughly 7%, compared to Ethereum's 3%. This high yield is attracting institutions seeking both capital appreciation and passive income. "Solana's staking rewards make it easier to justify as an allocation," said Hougan, a crypto strategist, noting that the network's productivity enhances its appeal in a market where yield generation is critical.

Growth in tokenized assets further underscores Solana's momentum. While Ethereum leads with $12 billion in real-world assets (RWAs), Solana has surged by over 300% in 2025, locking in $642 million in RWAs. This outpaces Ethereum's 50% growth, reflecting Solana's rapid adoption in decentralized finance (DeFi) and other sectors. The blockchain's ability to process transactions quickly and at lower costs has made it a preferred platform for developers, fueling innovation and expanding its ecosystem.

Market capitalization also plays a role in Solana's allure. With a market cap of $107 billion, it is significantly smaller than Ethereum's $480 billion, offering more room for growth. Hougan argues that Solana's smaller size makes a doubling in value more plausible than Ethereum's, a key consideration for investors targeting higher returns. Meanwhile, critics like Grayscale's Zach Pandl caution that diversified crypto portfolios may still be preferable, but the argument for Solana as a high-conviction bet remains strong.

The broader crypto landscape is also shifting. Bitcoin and Ethereum have gained nearly 20% in 2025, while speculative tokens like Dogecoin have faltered. Solana, however, remains relatively stable, with its unique network design—built to address Ethereum's scalability and speed limitations—positioning it as a faster, cheaper alternative for developers and users. Some investors even ask whether Solana could make someone a millionaire by 2026, a question examined by The Motley Fool.