Liquid Staking Protocols See Continued Growth Despite Market Volatility

Liquid Staking Protocols See Continued Growth Despite Market Volatility

Recent data has shown that liquid staking protocols are continuing to grow, with top decentralized finance (defi) protocols recording an additional 441,110 ethereum (ETH) in just 12 days. As of May 12, 2023, the total value locked (TVL) in liquid staking derivatives (LSDs) stands at 8,872,715 ether, equivalent to $16.101 billion. This marks a significant increase from the 8,431,605 ethereum locked in liquid staking protocols on April 30. Despite the recent addition of 441,110 ethereum, the TVL in LSDs is currently worth less than it was on April 30 due to ethereum’s decline in market value.

Lido Dominates the Market with 74.3596% Share

Lido dominates the market with a 74.3596% share, accounting for 6.59 million ETH of the 8,872,715 ether locked in today. The second-largest LSD protocol is Coinbase Wrapped Staked Ether, with 1,145,137 staked ether. This week, Lido’s TVL jumped by 4.87%, while Coinbase’s staked ETH value dipped by 1.47%. Rocket Pool witnessed an increase, with its TVL jumping by 5.27%. Frax Ether and Stakewise also saw gains, recording a 5.21% and 0.48% increase, respectively, in just seven days.

Rocket Pool and Frax Ether Emerge as 30-Day Leaders

Looking at the 30-day metrics, Lido’s value locked rose by 11.10%, while Coinbase’s staked ETH TVL saw a 3.95% reduction. Frax and Rocket Pool emerged as the 30-day leaders, with Rocket Pool surging by 34.37%, and Frax recording a 42.55% increase. Rocket Pool is closing in on Coinbase in terms of the number of staked ETH, with 622,633 ETH locked, while Frax Ether only has 187,551 ETH locked. However, Rocket Pool’s deposits would have to grow by 84%, or more than 523,000 ETH, to surpass Coinbase’s number of staked ETH locked into the protocol. Despite market volatility, it appears that liquid staking protocols are still showing strong growth potential and may continue to do so in the future.


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