409 Million SOL Staked: Is the Market Overlooking Solana’s Potential?

Solana’s fundamentals remain robust even with the recent struggles in SOL’s price. The network has achieved a milestone by reaching an all-time high of 409 million SOL in staked supply. This increase enhances the security of the chain; however, questions linger regarding the overall decentralization of the network.

Key Takeaways

Solana has achieved an all-time high of 409 million SOL staked supply, enhancing network security.
The Solana Foundation's reduction of subsidies has led to a significant decrease in the number of Validators, raising decentralization concerns.
Interest in real-world asset tokenization is rising, with RWA holders increasing by 11% in the past month.
Despite positive network trends, SOL's price has dropped by 58%, trading at $121.

Solana staked supply hits ATH - Will it boost SOL’s recovery odds?

Solana
Source: Blockworks

Challenges Facing Solana Validators

In an effort to promote sustainable staking economics, the Solana Foundation has removed subsidies previously granted to some validators—those responsible for proposing blocks on the network.

To date, the Solana Foundation has cut its delegated SOL from 85 million to just 23 million, focusing this support on smaller validators.

Solana
Source: Blockworks (Solana Foundation delegated SOL)

This necessary decision, however, has resulted in a significant decline in the number of small validators entering the staking space. The total number of Solana validators fell sharply by 68%, dropping from 2,500 to 800. This trend raises concerns about a potential risk to decentralization if it continues. For perspective, Ethereum boasts nearly 1 million validators—1,250 times the number securing Solana’s network.

Surge in Real-World Asset (RWA) Activity

Despite these challenges, Solana has seen a spike in network activity, largely driven by interest in real-world asset (RWA) tokenization. The number of RWA holders within the Solana ecosystem reached over 115,000, marking an 11% increase over the last 30 days, even amid a broader market slowdown.

Solana RWA
Source: RWA

This uptick indicates a growing demand for tokenized assets, such as on-chain stocks, credits, and various money markets. Nevertheless, when looking at net flows of RWA, Solana has not performed as well as other blockchains. In Q4 2025, Solana attracted $216 million in net flows. By contrast, leading competitors like BNB Chain and Ethereum each recorded over $1 billion in inflows, signifying a considerable difference in performance.

Solana
Source: RWA

Interestingly, the number of RWA users on Solana is comparable to Ethereum’s 138,000 holders, vastly exceeding BNB Chain's 8,000. However, Solana’s lower net flows point to BNB Chain’s RWA users being more prominent players, capable of moving larger amounts despite being fewer in number.

Nevertheless, the price of SOL does not seem to reflect these positive trends in network fundamentals. As of this writing, the token's price has declined by 58%, trading at $121.

Conclusion

In summary, while Solana shows strong fundamental health through an increase in staked supply and activity in RWA tokenization, concerns regarding validator centralization and lower net inflows compared to competitors must not be overlooked. As the ecosystem continues to evolve, it remains to be seen how these factors will impact SOL’s price and overall market perception.