by • The value locked in 11 Ethereum-based liquid staking protocols has risen above $11 billion, with Lido, Coinbase and Rocket Pool recording 4-10% gains over the past month.
• Lido holds more than 73% of the total value locked out of the 6.87 million ether held by the 11 liquid staking platforms.
• Coinbase’s wrapped ether has 1,081,304 ethereum (ETH) locked into the platform and the TVL has gained 5.74% last month.
Ethereum Liquid Staking Trend
The trend of Ethereum liquid staking is gaining traction as it was introduced on Beacon chain contract in February 2021 and since then 16.47 million Ethers are currently locked worth $26 billion on the network which cannot be withdrawn until March hard fork is completed. Out of this 41%, 6.87 million Ethers are being held by 11 decentralized finance (DeFi) protocols, with a total value locked of more than $11 billion.
Lido Leads The Pack
Lido holds 73% of the Total Value Locked (TVL) out of all 11 liquid staking protocols with a 4.27% increase in its market share last month valued at around $8.18 billion as on Feb 7th 2023 while Coinbase’s wrapped Ether platform holds 15.72 % of TVL after witnessing a growth of 5.74%. Rocket pool and Frax Ether had highest gain in terms of monthly percentage increase among top five projects with 1071 % and 76.73 % respectively while Stakewise is fifth largest holding 1.23 % with 84,481 ethers locked valued at $136 million respectively .
Remaining Six Platforms
Apart from these top five platforms remaining six DeFi based liquid stakers have garnered lesser market share collectively amounting to 5%. These include Snowfork , Alpha Finance , Bao Finance , Pylon Network , Anchor Protocol & Cream Holding . All these protocols have performed relatively well over past couple months to join ranks amongst top eleven liquidity providers for Ethereum assets .
Future Outlook
Liquidity for Ether tokens continues to rise steadily as DeFi based applications become more popular due to low transaction cost & higher returns associated with them compared to traditional financial instruments like bonds & stocks . This trend will continue to swell further as Ethereum developers continue their effort towards scaling up network & introducing new features such as sharding & zk Rollup solutions making it possible for large scale enterprise level applications to be built atop blockchain technology .
Conclusion
Liquid staking is becoming increasingly popular amongst investors who want to earn rewards without having to rely on custodianship which make it highly attractive choice for users who don’t want risk associated with leaving large sums of money idle but also need liquidity when needed . As we move forward we can expect even greater surge in Ethereum based liquidity providers due to availability scalability solutions & robust smart contracts that ensure secure storage thereby enabling larger investor base participation .
