Sonic SVM leads $50M in Solana staking and announces new partnerships
Solana Layer-2 blockchain Sonic has passed a significant milestone by announcing a new partnership to promote the growing recovery industry on the Solana network.
Sonic, the first gaming-focused Solana Virtual Machine (SVM) L2 network, has partnered with Solana Virtual Machine (SVM) recovery platform Solayer and fluid recovery layer Adrastea to improve Solana's representative rewards.
The partnership comes as Sonic SVM acquired Solana's (SOL) proprietary rights to Solayer worth more than $50 million, according to an announcement shared with Cointelegraph.
This makes Sonic SVM the largest deployed AVS (Actively Authenticated Service) on Solayer.
The $50 million milestone highlights Solana's potential to grow its savings and retention ecosystem, said Chris Zhu, founder and CEO of Sonic SVM. He told Cointelegraph.
“Solana's decentralized services like Sonic AVS reflect the increasing sophistication and maturity.
According to Defillama data, liquid storage has grown to become the largest protocol category on Ethereum, with a total value of $44 billion in total value locked (TVL), while restocking has a value of $15 billion, the fifth largest protocol category, according to Defillama data.
Ethereum by protocol categories. Source: Defillama
Some blockchain developers are expecting to see similar explosive growth from Solana-based re-staking and liquidity staking solutions.
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Can Solana Revive Ethereum's Growth?
A Solana-based reboot could be poised for massive growth, potentially matching the Ethereum ecosystem, Sonic Zoo reports.
The innovation of other Solana-based protocols, such as Gito, Solaire, and Phragmetric, can greatly contribute to the network's re-invention ecosystem, Zhu said.
“Solana is setting the stage for a future where the ecosystem will be more decentralized and able to manage more complex and high-value applications. This dynamic approach could centralize Solana's larger ecosystem, with versatility and adoption that could surpass Ethereum.”
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Others see potential in the house. Baybit Research expects Solana-based liquid inventory to increase more than fivefold due to continued retail adoption.
Baybit Research told Cointelegraph:
“In our view, Solana has the potential to raise liquidity due to its active community. Based on Ethereum LST market statistics, the Solana LST market could grow to $18 billion.”
Liquid staking TVL, Solana. Source: Defillama
Solana-based liquidity is valued at $5.9 billion per TVL per publication, according to Defillama data.
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