The total number of Ethereum locked in liquid staking derivatives (LSD) protocols reached 10 million on June 29, according to data of DeFilama.
Liquid staking protocols allow users to earn staking rewards while providing liquidity for other crypto-based activities such as Lido (LDO) and Rocket Pool (RPL).
Lido dominates LSD
DeFillama’s data tracks 22 liquid stake protocols, with the total value of assets locked in these protocols at $18.55 billion at press time.
Lido is the dominant player in the space, controlling 74.5% of the market. This is ahead of competitors, including liquid staking services provided by major centralized exchanges like Coinbase and Binance, which control roughly 12% of the combined market.
Since Ethereum enabled withdrawals of staked Beacon Chain ETH, LSD platforms have enjoyed increased interest as various institutions like Celsius have been repossessing their ETH holdings.
By context, the token is unlocked panel shows that more than 7 million ETH tokens have been deposited on the Beacon Chain since withdrawals were enabled. At the same time, 3.52 million ETH were withdrawn during the same period.
This increased interest has caused the total amount of ETH staked to exceed the ETH balance on centralized exchanges, including Coinbase and Binance.
LSD Token Fight
Despite the milestone, tokens in the liquid staking sector have struggled over the past 24 hours, rising just 0.26%, according to CryptoSlate data.
According to the data, only Lido’s LDO and Stafi’s FIS saw their value rise by 1.18% and 0.51%, respectively, during the reporting period.
Others such as Rocket Pool, Frax Share (FXS), Ankr, pSTAKE Finance (PSTAKE) and StakeWise (SWISE) posted slight losses.
CryptoSlate The data also shows that all assets in the sector fell by 7.25% in the last seven days.
Overall, the market capitalization of crypto tokens in this sector sits at $3.03 billion at press time.
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