Solana Liquid Staking Projects Reach New ATH

Solana has over $50 billion staked through native staking, making a large amount of capital illiquid. 

According to a chart from Dune Analytics, the total value locked (TVL) in liquid staking token (LST) projects on Solana exceeds $4.30 billion. Moreover, the market share of liquid-staked SOL rose to 6%, up from 2% six months ago.

While LST projects on Solana are yet to match the scale of Ethereum-based dApps like Lido and Rocket Pool, they are making significant strides. For instance, Jito has emerged as Solana’s leading dApp, boasting a TVL of over $1.7 billion, a 20% increase from the previous month. Marinade Finance follows closely with over $1.4 billion. 

BlazeStake, a newer liquid staking project, is approaching $400 million in TVL. Due to its benefits and emerging opportunities, the liquid staking sector is expected to continue growing across numerous blockchain networks, such as Ethereum, Polygon, and Solana.

Liquid staking protocols, in essence, provide users with a tokenized version of their already staked tokens. This allows users to put these tokens in multiple DeFi platforms to generate extra yield, without having to unstake their original tokens.

As if it weren’t enough, liquid restaking emerged as the new kid on the block, with EigenLayer boasting over $18B in TVL.