Liquid Staking Protocols on Solana Witness 91% Surge in Total Value Locked
The total value locked in Solana’s liquid staking protocols, including Marinade, Lido, and Jito, has seen a remarkable surge of 91% year-to-date.
Leading the pack in the liquid staking niche on Solana is Marinade Finance, commanding a 62% market share, followed by Lido with 27% market share.
The Solana ecosystem has witnessed a substantial rise in the value of assets staked into liquid staking protocols, representing a 91% increase since the beginning of the year.
As of the end of June, the cumulative value of staked Solana (SOL) tokens across liquid staking protocols such as Marinade Finance, Lido, Jito, JPool, and Socean reached $187 million, as reported by The Block Research. This marks significant growth compared to the initial $98 million staked at the start of the year. Currently, these protocols account for approximately 69% of the total value locked within the Solana network, estimated to be around $270 million.
Kevin Peng, a research analyst at The Block, suggests that the increased inflows into Liquid Staking Derivatives (LSDs) in the Solana ecosystem can be attributed to the broader growth of this niche in the crypto space. Notably, the surge in liquid staking on Ethereum following the Shapella upgrade may have had a ripple effect, extending to Solana.
Peng states, “Overall, LSDs have experienced significant growth across the crypto industry in 2023, largely due to the new dynamics around staking on Ethereum. However, the demand for these products has also spilled over into the Solana ecosystem.”
The data reveals that 1.66 million SOL tokens, equivalent to $31 million, have been deposited into LSD protocols this year, indicating that increased inflows have played a role in the surge of total value locked in liquid staking. Additionally, the price appreciation of Solana’s native token, SOL, which has surged by approximately 60%, has further contributed to the increased value of SOL deposits in liquid staking.
Marinade Finance remains the dominant player in the Solana ecosystem, leading the way in the liquid staking domain with a significant market share of 62% and a total value locked (TVL) of around $120 million, as reported by The Block Research. While Lido Finance is the leading liquid staking protocol in the Ethereum ecosystem, it holds a 27% market share within the Solana sphere.
Jito Labs, operating a client software on the Solana network, has also made impressive strides in the field of liquid staking. Leveraging its staking product, the project has witnessed its share in liquid staking grow from 1.9% to 6.9% year-to-date.
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