Solana DeFi Tokens Show Higher Growth but Lower Valuation Than Ethereum
Franklin Templeton's report highlights the rapid growth of Solana's decentralized finance (DeFi) sector, which is outperforming Ethereum in terms of fee generation despite lower token valuations. Key points include:
- Solana's DeFi protocols experienced a median fee growth of 2,400% year-over-year.
- Ethereum projects saw only 150% growth in fees.
- Valuation multiples for Solana protocols average 9x compared to 18x for Ethereum.
- In January 2025, Solana's decentralized exchanges (DEXes) surpassed Ethereum's in total trading volume.
- The report suggests a potential shift towards Solana dominance in DeFi, moving away from Ethereum Virtual Machine (EVM) reliance.
- Layer 2 solutions on Ethereum are gaining traction, indicating effective scaling.
- Future alignment of Solana's protocol valuations with Ethereum counterparts may occur as Solana proves its capabilities.