Ethereum Liquid Staking Trend Continues; 5 platforms control 97% of the market – Defi
On February 7, 2023, the value was 11 Ethereum-based liquid staking protocols have surged to over $11 billion, with Lido, Coinbase, and Rocket Pool posting gains of 4-10% over the past month. Lido holds more than 73% of the total locked value (TVL) of the 6.87 million Ethereum held by the 11 liquid staking platforms. More than 15% of liquid staking TVL is staked with Coinbase wrapped Ethereum.
Lido is leading the Ethereum liquid staking industry with 73% of the total value
Staking Ethereum has become a highly sought-after trend since its inception on the network’s beacon chain. The contract with the Beacon chain has locked 16.47 million Ethereum worth $26 billion pending the upcoming hard fork cannot be withdrawn in March. A significant portion of this locked Ether is held in liquid staking protocols, as 11 decentralized finance (Defi) protocols hold 41% of the total, or 6.87 million Ethereum.
Liquid staking involves exchanging Ethereum for tokenized versions of Ethereum. This allows holders to earn rewards while still having a liquid form of the coin that they can sell at any time without relying on a custodian. The staking Ethereum is held in different protocols and the platforms handle exchanges for minting and redemption processes. Of the 41% valued at more than $11 billion, Lido holds 73% of the total locked value (TVL). Lido’s TVL is up 4.27% over the past month, and its value today is around $8.18 billion.
Coinbase’s Wrapped Ethereum has 1,081,304 Ethereum (ETH) locked in the platform and the TVL has gained 5.74% over the past month. Coinbase-shrouded Ethereum platform TVL has a 15.72% market share and the supply is worth $1.76 billion. The second largest liquid staking platforms saw the largest gains among the top five projects over the past month. Rocket Pool TVL increased by 10.71% in 30 days and during the same period Frax Ethereum TVL increased by 76.73%. Rocket Pool has around 387,016 ETH locked and Frax Ethereum has a total of 87,134 Ethereum.
Stakewise is the 5th largest liquid staker with 84,481 Ethereum Locked on February 7, 2023 worth $136 million. Frax Ethereum holds a 1.27% market share, while Stakewise holds 1.23% of the 6.87 million Ethereum. The other six liquid decentralized finance staking platforms hold just 2.6% of the $11 billion worth, while the top five liquid stakers control 97.4%.
What are your thoughts on the continued growth of Ethereum liquid staking protocols? Do share your thoughts in the comment section below.
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Source: Crypto News Deutsch
