Ethereum has pulled far ahead in total value locked while Solana remains stuck despite strong network activity.
Summary
- Ethereum’s DeFi TVL has jumped from $43B in April to $92B, aided by yield strategies, institutional inflows, and an ETH rally.
- Solana’s TVL is holding at $25.7B backed by $12.46B in stablecoins and $118B in 30-day DEX volume.
- Reliance on incentives and falling DEX activity could limit Solana’s near-term breakout potential.
In a Sept. 3 post on X, analytics firm Sentora (formerly IntoTheBlock) noted that Ethereum (ETH) has already pushed past its previous highs, as Solana’s (SOL) decentralized finance activity circles early 2025 levels.
While Solana’s next move is still up in the air, Ethereum has managed to maintain momentum, as shown by this contrast.
Ethereum’s TVL momentum
Ethereum’s DeFi ecosystem has experienced a robust comeback, with total value locked increasing to $92 billion from the ~$43 billion yearly low set in April. That indicates that confidence is returning to the network.
Growth on Layer-2 networks, institutional inflows, and restaking tactics are driving Ethereum’s comeback. Large players like Lido DAO (LDO) and Aave (AAVE) each have more than $30 billion in deposits, while protocols like EigenLayer (EIGEN) have attracted billions of dollars by offering stablecoin yields as high as 25%.
TVL has also increased as a result of ETH’s rise. At about $4,300, the token has increased 84% in the past year, while spot exchange-traded funds have seen inflows since July. The supply of Ethereum stablecoins has risen as well, surpassing $150 billion, indicating strong liquidity to support trading and lending.
Solana stalls despite rising network activity
The cost and speed of Solana are its advantages. Because it can process thousands of transactions per second for a fraction of a cent, the network is attractive for high-volume trading and more recent use cases like memecoins. Its stablecoin base of $12.5 billion provides room for growth.
On the activity side, decentralized exchanges on Solana handled $118.4 billion in volume over the past 30 days, and around 2.6 million users are active on the chain every day. Lending protocols account for just $3.63 billion of its TVL, meaning there is still room for collateral to be recycled and leveraged.
But the picture isn’t entirely bullish. According to Sentora, Solana distributed $28.3 million in token incentives in one day, compared with just $1.49 million in chain fees, an imbalance that raises questions about sustainability. Additionally, the weekly decentralized exchange volume decreased by 8.3%, indicating that activity might be slowing down soon.
In contrast, Ethereum is attracting new users through yield strategies, institutional demand, and a scaling roadmap. As Sentora’s analysis shows, Ethereum has taken the lead in DeFi’s latest growth cycle.
Solana still has the liquidity, activity, and technical advantages to mount a challenge, but to close the gap, it will need to turn short-term bursts into lasting momentum.
