Solana Is Losing Most of Its Value Back from Ethereum

Michael Nadeau, founder of The DeFi Report, noted that Solana is losing a large portion of its value back to Ethereum from other blockchains. Nadeau emphasized that Solana should have withdrawn its total locked value (TVL) from Ethereum and layer-2 networks. However, he stated that this has not happened.

According to Artemis data, Solana has lost around $55 million in TVL this year. Still, while Solana has withdrawn $2.36 billion from Ethereum, 42% of that amount has returned.

According to DefiLlama, Ethereum’s TVL exceeds $50 billion. Nadeau noted that Ethereum saw a net outflow of $6 billion, but 83% of that value went to layer-2 chains.

Solana surpassed Ethereum in daily fees on October 28, generating $2.54 million in fees, making it the fifth-largest fee-generating protocol. This increase is attributed to increased activity at Raydium.

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