The Solana ecosystem has experienced a significant increase in the supply of liquid staking tokens, with their total market capitalization reaching $7.5 billion, according to on-chain data.
Data from Duin showed that the total market capitalization of liquid staking tokens on Solana (SOL) peaked above $7.5 billion on January 10. This growth came as leading LSTs—including Jito-staked SOL, Binance-staked SOL, and Marinade-staked SOL—saw notable increases over the past January 10. last week.
Of these, jitoSOL remains the leader with a market share of 37.6%, bringing the total market capitalization to over $2.8 billion at the time of writing.
The bnSOL and mSOL liquid staking tokens account for 20.2% and 14.1% of Solana’s LST market share, with market values of $1.5 billion and $1.05 billion, respectively.
Other Solana LSTs with significant market caps include Jupiter’s jupSOL, Solayer’s sSOL, Bybit’s bbSOL, and Laine’s laineSOL.
Dune data also shows that the total market cap of staked SOL currently stands at $82.66 billion, meaning the $7.5 billion value for liquid staking tokens yields an LST ratio of 9.07%.
However, despite the overall market capitalization growth, total value (TVL) in Jito and Marinade have fallen by 19% and 15% respectively over the past month. On the other hand DeFiLlama Data shows that the total value captured in SOL deployed in Binance increased by more than 29% over the same period. Binance announced the launch of bnSOL in August 2024.
In the decentralized financial market, liquid staking protocols and their associated tokens are playing an increasingly important role. These protocols provide users with access to staking services, while LSTs provide tokenized representations of staked assets – in this case, Solana’s native token, SOL.
For example, users can stake SOL to receive an LST such as jitoSOL or bnSOL. These tokens can then be traded or used on other DeFi platforms, allowing holders to earn additional rewards while their underlying assets remain staked.
