Summary
• Liquid staking now has the largest total value locked (TVL) among decentralized finance (DeFi) sub-sectors, having grown 131% since the start of the year.
• Liquid staking is the most common way for users to stake Ethereum (ETH) with a 37.1% market share in the total ETH staking market.
• Lido DAO (LDO) dominates liquid staking with a 75.4% market share.
Liquid Staking Becomes Largest Sub-Sector in DeFi
According to Binance Research , liquid staking in unseated decentralized exchanges (DEXes) was the leading DeFi sub-sector on April 28th with a difference of $6.8 million in TVL. Liquid staking is now the most common way for users to stake Ethereum ( ETH ) with a share of 37.1% in the total ETH staking market, allowing users to earn yields while still retaining liquidity through a liquid staking token (LST), which they can trade, lend and use as collateral. As of June 30, liquid staking’s TVL market share among DeFi categories is 24%, surpassing DEXes at 17.9%.
Liquid Staking Market Dominated by Lido DAO
The liquid staking market remains largely concentrated on a few protocols though and largely monopolized by Lido DAO (LDO). With an extensive integration network across diverse DeFi protocols, LDO maintains its dominance with a 75.4% market share and showcases its deep liquidity in the ecosystem.
Growth Driven By Increasing Migration To DEXes
Notable developments have emerged in DeFi since the beginning of this year due to an impressive growth of over 131% attributed to liquid staking’s remarkable ascent, which has become the largest sub-sector alongside increasing migration of users towards DEXes . The surge appears to have eroded other sectors’ market shares including that of DEXes, lending and bridge, CDPs, yield and minor DeFi categories .
Conclusion
In conclusion, liquid staking has become one of most important sectors within Decentralized Finance thanks to its ability to provide users with both rewards from their tokens while also retaining liquidity through tradable tokens such as LSTs from LDO . While this sector may be dominated by just one provider at present, it is likely that more providers will emerge as this sector grows over time due increasing user demand for these services .