Solana briefly surpassed Ethereum in total staked value of its native token, SOL, sparking debate about the potential impact on the network’s long-term health. While the temporary shift saw Solana’s staked value reach over $53.9 billion, exceeding ETH’s $53.93 billion, it remains to be seen whether this event signifies bullish or bearish momentum for the Solana ecosystem. The figure briefly reached the peak on April 20th based on blockchain data from sources like Beaconcha.in and CoinGecko. 8.31% annualized return for SOL stakers is driving interest in the network, but high returns are raising concerns regarding their effect on DeFi activity. Some analysts argue that this level of staking concentration may hinder Solana’s DeFi sector due to potentially lower returns compared to decentralized exchanges, such as liquidity providers and lending protocols.