As of February 7, 2023, 11 Ethereum-based liquid staking protocols are set to exceed $11 billion in locked value, with Lido, Coinbase, and Rocket Pool reporting 4-10% growth over the past month. Lido holds over 73% of the total value locked (TVL) of the 6.87 million Ether held by 11 Liquid Staking platforms. Liquid Staking: Over 15% of TVL is being staked with Coinbase’s wrapped Ether.
Lido Leads the Pack With 73% of Total Value Locked in the Ethereum Liquid Staking Industry
Ethereum staking has become a highly sought-after practice since its introduction on the network’s Beacon chain. The Beacon Chain contract has 16.47 million Ether locked in, worth $26 billion, that cannot be withdrawn until the upcoming March hard fork. A significant portion of this locked ether is held within liquid staking protocols, as 11 decentralized finance (DeFi) protocols hold 41% of the total, or 6.87 million ether.
Liquid staking involves exchanging Ether for tokenized versions of Ether. This allows holders to earn rewards while the coin remains in liquid form that they can sell at any time without relying on a custodian. Staked ether is held within various protocols, and platforms handle the exchange for the minting and redemption processes. Of the 41%, which is valued at over $11 billion, Lido holds 73% of the Total Value Locked (TVL). Lido’s TVL saw an increase of 4.27% in the last month, and its locked value today is around $8.18 billion.
1,081,304 Ethereum in Coinbase’s Wrapped Ether (ETH) closed in the platform and TVL increased by 5.74% in the last month. Coinbase holds 15.72% of the market share of wrapped ether platform TVL and Stash is valued at $1.76 billion. The next two largest Liquid Staking platforms saw the biggest gains over the past month among the top five projects. Rocket Pool’s TVL climbed 10.71% over 30 days and Frax Ether’s TVL climbed 76.73% during the same time frame. there are about 387,016 in the rocket pool ETH Lock and Frax Ether have a total of 87,134 Ether.
Stackwise is the fifth largest liquid stacker, with 84,481 Ether locked on February 7, 2023, worth $136 million. Frax Ether has 1.27% market share, while Stackwise has 1.23% of 6.87 million Ether. The other six decentralized finance liquid staking platforms hold just 2.6% of the $11 billion in value, while the top five liquid stakingrs control 97.4%.
What do you think about the continued growth of the Ethereum Liquid staking protocol? Share your thoughts in the comments section below.
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