Solana liquid staking TVL up 91% in six months

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solana-min

The volume of funds blocked (TVL) in Solana’s liquid staking protocols has increased by 91% since the beginning of the year, from $98 million to $187 million, according to The Block.

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TVL of liquid staking in Solana. Data: The Block.

According to DeFi Llama, Marinade Finance, Lido Finance, Jito, JPool, and Socea combined account for 69% of the total blockchain TVL, which is valued at $273 million.

Marinade Finance is in the lead, occupying 62% of the segment in the network. They are followed by Lido Finance with 27% and Jito with 7%.

According to Kevin Pan, an analyst with the publication, the influx of funds into liquid staking derivatives (LSD) in the Solana ecosystem is presumably associated with the overall growth in popularity of such instruments. In particular, this was facilitated by the Shapella hard fork in the Ethereum network.

In 2023, about 1.66 million SOL (~$31 million) were blocked in such contracts.

“In 2023, LSD as a category of digital assets has grown in large part due to the increase in staking dynamics in Ethereum. Demand for these products has also seeped into the Solana ecosystem,” Peng explained.

Another reason for the rise of TVL was the steady growth of the SOL token. According to CoinGecko, the coin has risen in price by 96% in six months, from $9.9 to $19.4.

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SOL/USDT daily chart on the Binance exchange. Data: Trading View.

As a reminder, Glassnode analysts reported the increased popularity of Ethereum staking on Lido Finance after the Shanghai update.

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