As of February 7, 2023, the value locked in 11 Ethereum-based liquid staking protocols has risen above $11 billion, with Lido, Coinbase, and Rocket Pool posting gains of 4-10% over the year. last month. Lido owns more than 73% of the total value locked (TVL) of the 6.87 million ether held by the 11 liquid staking platforms. More than 15% of the liquid stake TVL is being staked with Coinbase’s wrapped ether.
Lido leads the pack with 73% of total value locked in Ethereum’s liquid staking industry
Ethereum staking has become a much-requested trend since its introduction on the network’s Beacon chain. The Beacon chain contract has 16.47 million ether locked up, worth $26 billion, which cannot be withdrawn until the next hard fork in March. 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 still having a liquid form of the currency that they can sell at any time without relying on a custodian. The ether staked is held within various protocols, and the exchanges are handled by the platforms for the minting and redemption processes. Of the 41%, which is valued at over $11 billion, Lido owns 73% of the total value locked (TVL). Lido’s TVL saw an increase of 4.27% last month, and its locked value is around $8.18 billion today.
Coinbase’s wrapped ether has 1,081,304 ethereum (ETH) blocked on the platform and the TVL has gained 5.74% last month. Coinbase’s shrouded ether platform TVL accounts for 15.72% of the market share and the stash is worth $1.76 billion. The next two largest liquid staking platforms saw the largest gains over the last month of the top five projects. Rocket Pool’s TVL was up 10.71% in 30 days, and over the same period, Frax Ether’s TVL was up 76.73%. Rocket Pool has about 387,016 ETH locked and Frax Ether has a total of 87,134 ether.
Stakewise is the fifth largest liquid participant, with 84,481 ether locked on February 7, 2023, valued at $136 million. Frax Ether has a 1.27% market share, while Stakewise owns 1.23% of the 6.87 million ether. The other six decentralized finance liquid staking platforms own just 2.6% of the $11 billion in value, while the top five liquid stakeholders control 97.4%.
What do you think about the continued growth of Ethereum Liquid Staking protocols? Share your thoughts in the comments section below.
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