• Solana boasts 400 million SOL tokens staked, representing a staking rate of about 71.3%.
  • SOL price has seen growth amid the ongoing trial of FTX's Sam Bankman-Fried
  • The Layer 1 chain has been focusing on validator diversity, with Jito Labs now holding a 31% stake

Solana (SOL) is experiencing a shift in sentiment with a staking ratio that has grown to 71.3%, which denotes a high level of community participation. The notable increase in liquidity staking comes as Sam Bankman-Fried of the collapsed FTX exchange goes to trial. In its latest report, Solana Foundation boasts of network growth through multiple validator clients, with Jito Labs' 31% stake.

Also read: Solana price performance YTD eclipses BTC, ETH; emerges as the largest decentralized PoS network

Nearly 400 million Solana staked as SBF's trial begins

SOL is now witnessing a surge in staking activity, accompanied by resilient price performance in the run-down to the week.

Notably, Solana’s network growth comes against the backdrop of the trial of Sam Bankman-Fried, the former CEO of the now-bankrupt FTX crypto exchange, which began on Tuesday.The legal battle that brings several counts of fraud against SBF had previously reduced liquidity for the network. In the last quarter of 2022, SOL experienced price weakness as its liquidity was hit by the FTX collapse.

In the last seven days, as per DeFiLlama, liquidity staking on Solana expanded. Marinade Finance experienced an 18.9% increase, and Jito Labs hiked by 22.2%. Multichain staking protocol Lido grew by 2.6%.

Liquidity staking on Solana
Liquidity staking on Solana

The proof-of-stake layer 1 chain allows staking through lending, running a validator, or delegating SOL to validators.

Jito Labs Dominates a 31% Stake

In a recent Validator Health Report, Solana revealed that more than 31% of the total stake is now flowing through the Jito Labs client. Jito Labs' presence in the Solana ecosystem has expanded from 0% last year. Solana has also revealed that two new validator clients are in development.

According to the Dune Analytics dashboard, SOL staked on Jito reached 2.3 million. It mentions that there are 15,310 stakers participating in JitoSOL.

Meanwhile, the price of Solana has been in the green with the token trading at $23.40 at press time.  Over the past week, SOL price has gone up by over 21%.

SOL price/Staked SOL 1-day chart
SOL price/Staked SOL 1-day chart

In the last week, the price of SOL has increased by 21.3%, reaching $23.31, and the total market capitalization has also grown by 21.5% to $9.64 billion. Daily trading volume has surged by nearly 74% to $453.85 million, reflecting increased activity.

Overall, SOL has a staking market cap of $9.25 billion,based on StakingRewards data. The R/R ratio, which measures reward-to-risk, is 0.81%, with a marginal decrease of 0.01%.

Solana's staking market growth, including the increase in staking by Jito Labs, bodes well for the layer 1 chain. As the FTX trial unfolds, Solana's price is expected to maintain its performance. Solana's focus on validator client diversity reduces the likelihood of network outages, adding positively to its price stability and liquidity.

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP