Franklin Templeton claims that Solana’s DeFi tokens are undervalued compared to Ethereum’s, highlighting its rapid growth and potential in the DeFi ecosystem.
The firm, a global asset management giant, has presented an analysis on the potential undervaluation of Solana’s DeFi ecosystem compared to Ethereum. While Ethereum has historically been the undisputed leader in the DeFi space, Solana has emerged as a formidable competitor, offering a combination of high speed, low transaction costs, and growing adoption.
However, despite its impressive growth, Franklin Templeton notes that Solana’s DeFi tokens are still trading at significantly lower valuation multiples than Ethereum. Their analysis raises questions about market expectations, while opening up a debate about the future of decentralized finance and Solana’s potential revaluation in the crypto landscape.
SOLANA BUYSFranklin Templeton compares DeFi growth and valuation on Solana and Ethereum
Franklin Templeton, in his report, highlights the disparity between the growth and valuation of Solana and Ethereum’s DeFi ecosystems. While Ethereum has traditionally been the leader in DeFi, Solana has seen explosive growth in recent years.
The report notes that Solana’s DeFi tokens exhibit 2.400% annual growth, compared to Ethereum’s 150%, and yet its valuation in terms of revenue multiples is 9x, while Ethereum’s is 18x. This discrepancy suggests a possible asymmetry in the valuation of both ecosystems.
Solana protocols leading this growth include Jito (JTO), Jupiter (JUP), Kamino (KMNO), Marinade (MNDE), and Raydium (RAY), all of which have achieved significant milestones in terms of Total Value Locked (TVL). For example, Jito achieved a TVL of $3.000 billion, a record for a Solana-based protocol.
PREPARE YOUR WALLETSolana establishes itself as a credible rival to Ethereum in the DeFi ecosystem
Solana has managed to gain ground in the DeFi space thanks to its innovative architecture, which allows for faster and cheaper transactions compared to Ethereum. While Ethereum processes around 20 transactions per second, Solana reaches up to 65.000 transactions per second, making it one of the fastest blockchains on the market.
Additionally, transaction costs on Solana are significantly lower than those on Ethereum, making it more accessible to users and developers. This combination of speed and accessibility has attracted a new wave of DeFi projects, from decentralized exchanges (DEXs) to lending and staking platforms.
However, Ethereum maintains its dominance thanks to its mature developer community and robust infrastructure. While Solana is gaining ground, it still faces challenges, such as concerns about its centralization and the need to improve its resilience to network disruptions.
BUY ETHEREUMEthereum maintains its lead, but Solana challenges its dominance
Ethereum remains the standard in the DeFi ecosystem, thanks to its long history and its developer community, which continues to innovate with Layer 2 scalability solutions, such as optimistic rollups and zero-knowledge rollups (zk-rollups). These solutions allow transactions to be processed off the main chain, reducing congestion and associated costs.
However, Solana is closing the gap with Ethereum in terms of adoption and usage. During Q2024 and Q26 2025, Solana surpassed Ethereum in transaction volume on its DEXs, and its number of hourly active addresses was XNUMX times higher than Ethereum’s in January XNUMX.
This rivalry is driving innovation in both ecosystems, and while Ethereum maintains its position as the leader in DeFi, Solana emerges as a viable alternative for those seeking higher speeds and lower costs.
According to Franklin Templeton, it seems that we are facing a new DeFi ecosystem that may be coming into An era of Solana Virtual Machine (SVM) dominance, moving away from the historical reign of EVM-based DeFi or, alternatively, Ethereum Layer 2 in full swing, which currently dominates most blockchain financial activity.
The firm concluded that both blockchains are adapting to market needs, offering innovation, security and scalability and that their competition will benefit the entire DeFi ecosystem, driving innovation and the adoption of new technologies in the world of cryptocurrencies.
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