Solana DeFi Tokens Significantly Undervalued Compared to Ethereum Counterparts, Reports Franklin Templeton

A recent analysis by Franklin Templeton reveals a notable valuation disparity between decentralized finance (DeFi) tokens on the Solana and Ethereum blockchains. Despite Solana’s DeFi ecosystem experiencing significant growth, its tokens are trading at lower valuation multiples compared to their Ethereum counterparts.

The report highlights that Solana’s leading DeFi projects have achieved a median fee growth of 2,400% year-over-year, accompanied by a median valuation multiple of 9x. In contrast, Ethereum’s top DeFi projects reported a 150% median fee growth with an 18x valuation multiple.

This valuation asymmetry emerges after a year of rapid expansion for Solana. Notably, in January 2025, Solana’s decentralized exchanges (DEXes) processed higher trading volumes than the entire Ethereum ecosystem combined. This surge was largely driven by memecoin traders, underscoring Solana’s increasing prominence in the DeFi space.

Franklin Templeton’s analysis suggests that DeFi may be transitioning towards an era dominated by the Solana Virtual Machine, moving away from the traditional Ethereum Virtual Machine-based DeFi. However, the report also acknowledges Ethereum’s continued evolution, noting that the shift to layer 2 blockchains indicates the effectiveness of Ethereum’s scaling strategies.

As Solana continues to demonstrate resilience and robust performance, the market may soon adjust valuations of its blue-chip DeFi protocols to align more closely with those on Ethereum. This adjustment could reflect a broader recognition of Solana’s growing influence and the maturation of its DeFi ecosystem.