The Solana ecosystem has witnessed a substantial increase in the value of assets staked in liquid staking protocols, resulting in a year-to-date rise of 91%, a report in The Block said.
By the end of June, the cumulative value of staked Solana (SOL) tokens across platforms like Marinade Finance, Lido, Jito, JPool, and Socean reached $187 million. This marks a notable growth compared to the initial $98 million staked at the beginning of the year. Currently, these protocols account for approximately 69% of the total value locked in the Solana network, estimated to be around $270 million.
According to Kevin Peng, a research analyst at The Block, the increase in inflows into Liquid Staking Derivatives (LSDs) within the Solana ecosystem may be attributed to the overall growth of this niche in the broader crypto space. The rise of liquid staking on Ethereum after the Shapella upgrade likely created a ripple effect that extended to Solana.
In 2023, approximately 1.66 million SOL, equivalent to $31 million, has been deposited into LSD protocols, indicating that increased inflows have contributed to the surge in liquid staking TVL. Another significant factor driving this trend is the price appreciation of Solana’s native token, SOL, which has risen by about 60%. This price increase has further boosted the value of SOL deposits in liquid staking.
Marinade Finance maintains its dominance as the leading liquid staking project in the Solana ecosystem, with an impressive 62% market share and a total value locked of around $120 million. In comparison, Lido Finance, the largest liquid staking protocol in the Ethereum ecosystem, holds a 27% market share within Solana’s realm.
Jito Labs, operating on the Solana network, has also made strides in liquid staking. Their staking product has propelled their share in liquid staking from 1.9% to 6.9% year-to-date.
