Ether Held in Liquid Staking Jumps From 10.65 Million to 11.33 Million in Less Than a Month
Over the previous 28 days, 25 liquid staking derivatives protocols added over 680,000 ETH. Today, liquid staking applications hold around 11.33 million ETH, with Lido maintaining a dominant market share of 73.98% and 8.38 million ETH stake.
- Lido received about 470,000 ETH of the total contributed ETH in the past 28 days.
- Coinbase’s liquid staking derivative product now holds around 1.22 million ETH.
- Rocket Pool increased its ETH holding from 857,967 to 901,072 ETH.
- Frax Ether holds approximately 254,692 ETH, and Eigenlayer’s liquid staking platform holds roughly 100,025 ETH.
- Binance Pool experienced a rise of nearly 29.2% and currently holds around 93,504 ETH.
Liquid Staking Accounts for Nearly 10% of All the Ether Circulating Today
Liquid staking protocols offer benefits such as avoiding technical hurdles, reduced risk, and immediate liquidity. However, there are risks, including de-pegging where the locked token and its derivative have differing values.
- Decentralized exchanges maintain a peg for liquid staking tokens, but if the total value locked in liquidity pools drops steeply, it can disrupt arbitrage incentives and cause the token to lose its peg.
- The allure of liquid staking remains strong, with 11.33 million ETH locked today, accounting for 9.42% of circulating ethereum.
Hot Take
Liquid staking continues to grow in popularity as users seek the benefits of easy setup, reduced risk, and immediate liquidity. However, the risk of de-pegging should not be ignored, as it can lead to significant slippage. Overall, the growth of liquid staking signals a shift towards more accessible and inclusive staking options in the crypto space.
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