Investment giant Franklin Templeton noted in a recent report that there is a significant valuation difference between decentralized finance (DeFi) tokens on the Solana and Ethereum networks.
Describing this disparity as “value asymmetry,” the report points out that Solana’s DeFi sector is growing faster and generating more revenue than Ethereum’s, but its tokens remain relatively undervalued.
“Solana DeFi valuation multiples are trading lower than their Ethereum counterparts on average despite their significantly higher growth profiles, highlighting a distinct valuation asymmetry,” the report said.
Franklin Templeton conducted an analysis comparing five leading Ethereum-based DeFi projects (LDO, AAVE, ENA, MKR, and UNI) to five of Solana’s top-performing protocols (JTO, JUP, KMNO, MNDE, and RAY). The findings showed that Solana projects experienced a staggering 2,400% median growth in fees year-over-year and a median valuation multiple of 9x. In contrast, Ethereum projects saw a more modest growth of 150% and a multiple of 18x.
This valuation disparity follows a period of rapid expansion for Solana. The network’s decentralized exchanges (DEXs) have witnessed a surge in trading activity, led primarily by memecoin investors. In January 2025, Solana’s DEXs recorded higher trading volumes than the entire Ethereum ecosystem combined.
“DeFi may be entering an era of Solana Virtual Machine dominance, moving away from the historical reign of EVM-based DeFi,” the report said.
However, Franklin Templeton clarified that this does not indicate Ethereum’s decline. Instead, the firm noted that the increased activity on Ethereum’s layer-2 scaling solutions indicates the strategic evolution of the network. “The shift of activity to layer-2 blockchains is evidence that the Ethereum scaling approach is advancing incrementally,” the report said.
Despite the current undervaluation of Solana-based DeFi assets, Franklin Templeton predicted that this disparity may not last forever. “As Solana continues to demonstrate its resilience as a decentralized computing platform, the market may soon price blue-chip, cornerstone Solana DeFi protocols in line with comparable Ethereum protocols,” the report concluded.
*This is not investment advice.
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