The post Liquid Staking on Solana Soars To All-Time High appeared on BitcoinEthereumNews.com.

Liquid staking accounts for 7% of Solana’s total market cap. Defying the narrative that Solana is only about memecoins, data indicates that users are increasingly using the network for other activities such as liquid staking. Total value locked (TVL) for liquid staking on Solana has been skyrocketing since October, surging to $3.73 billion from $244 million in that time, according to a Dune Analytics dashboard. The figure is 7% of the network’s entire market capitalization. Solana LST Ratio – Dune Analytics The data indicates that Solana, the fifth-largest blockchain by market cap, is able to attract users and investors with use cases besides memecoins, though these useless tokens continue to drive the majority of activity on the chain. Liquid staking protocol JITO has the biggest share of the ecosystem with $1.57 billion of TVL, or 44% of the sector’s total supply, followed by mSOL with $600 million, or 17%, and in third place is jupSOL with $317 million, or 9%. This could spell a tricky situation for Ethereum, where the overwhelming majority of liquid staking is taking place. If Solana is able to drain some of its liquid staking activity–considering the pie isn’t growing but capital simply moves from one protocol to the other–then Ethereum’s Lido, Eigenlayer and other popular liquid staking and re-staking protocols are in for stiff competition. Still, Ethereum’s liquid staking ecosystem is magnitudes larger, with $47 billion of TVL, a considerable tenfold lead on Solana’s entire liquid staking sector, according to DefiLlama. Liquid staking is an option for users who have their tokens already staked in a protocol to make use of that token in other DeFi applications. Users receive a tokenized version of their staked crypto, which they can then deploy across ecosystems for other uses, opening up a world of opportunities without requiring them…

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Filed under: News - @ July 9, 2024 9:16 pm