As of February 7, 2023, the value locked in 11 Ethereum-based liquid staking protocols has risen to more than $11 billion, with Lido, Coinbase, and Rocket Pool recording 4-10% gains in the past month. Of the 6.87 million Ether held by 11 liquid staking platforms, Lido holds over 73% of the total value locked (TVL). More than 15% of liquid staked TVL is staked with Coinbase’s wrapped Ether.
Lido Leads the Ethereum Liquid Staking Industry with 73% of Total Value Locked
Staking Ethereum has become a highly sought-after trend since its launch on the network’s Beacon chain. The Beacon chain contract has locked 16.47 million ethers, worth $26 billion, which cannot be withdrawn until the upcoming March hard fork. 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 ether.
Liquid staking involves exchanging ether for a tokenized version of ether. This allows holders to earn rewards while still having a liquid form of tokens that they can sell at any time without relying on a custodian. The staked ether is held in various protocols, and the platform handles the exchange for the minting and redemption process. Of the 41% worth over $11 billion, Lido holds 73% of the total value locked (TVL). Lido’s TVL increased by 4.27% last month, and today’s value locked is approximately $8.18 billion.
Coinbase’s wrapped ether has 1,081,304 ethereum (ETH) locked in the platform, with TVL up 5.74% over the last month. Coinbase-wrapped ethereum platform TVL holds 15.72% of the market, worth $1.76 billion. The next two largest liquidity staking platforms saw the biggest gains in the top five projects last month. Rocket Pool’s TVL has increased by 10.71% in 30 days, while Frax Ether’s TVL has increased by 76.73% in the same time frame. Rocket Pool has roughly 387,016 ETH locked, while Frax Ether has a total of 87,134 ETH locked.
Stakewise is the fifth largest liquidity staker, with 84,481 Ether locked up on February 7, 2023, worth $136 million. Frax Ether holds 1.27% of the market, while Stakewise holds 1.23% of the 6.87 million Ether. The other six DeFi liquidity staking platforms hold only 2.6% of the $11 billion in value, while the top five liquidity stakers control 97.4%.
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Jamie Redman is the Head of News for Bitcoin.com News and a fintech reporter based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
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