- Solana’s liquid staking ratio hit 7%, boosting DeFi liquidity with $150M support from Binance and Bybit through bbSOL and bnSOL.
- Solana outpaces Ethereum with 68% of its supply staked, compared to Ethereum’s 28%, reflecting rising network engagement.
- Solana’s staked value surged from $7.5B to $58B in a year, highlighting a $50B capital inflow and rapid network growth.
At an all-time high of 7%, Solana’s liquid staking ratio made a substantial contribution to the liquidity of the DeFi sector. Platforms like Sanctum, which reduced the liquidity barrier by allowing liquid staking tokens (LSTs) to join the market, are mostly to blame for this spike.
Furthermore, through bbSOL and bnSOL, Binance and Bybit have jointly contributed approximately $150 million in liquidity, which has boosted Solana’s DeFi liquidity environment.
Solana’s Liquid Staking Ratio reaches ATH at 7%, bringing more liquidity to be used in DeFi
Sanctum has lowered the liquidity barrier for LSTs to enter, including bbSOL ($92M) and bnSOL ($66M) from Binance and Bybit. They have provided $150M+ liquidity to be used in Solana pic.twitter.com/lu55wnnnrc
— Tom Wan (@tomwanhh) October 10, 2024
Solana’s Staking Dominance Over Ethereum
68% of Solana’s total supply was staked by September 2024, surpassing Ethereum in this regard Ethereum has a 28% stake rate. This notable distinction draws attention to Solana’s increasing user base participation and network engagement. Solana’s Total Value Locked increased from its mid-2023 stabilization at $1.5 billion to $2 billion, crossing the $5 billion threshold by October 2024.
The rise in Solana’s staked value, which increased from $7.5 billion in September 2023 to $58 billion in September 2024, is a glaring sign of the blockchain’s increasing acceptance. The $50 billion increase in value suggests that the Solana network is receiving more and more investment confidence. Ethereum still has the largest Proof-of-Stake network with $88 billion in stakes, but Solana’s staked value is currently competitive with Ethereum’s.
Impact of Liquid Staking on Solana’s Network
In addition to having a greater staking ratio, Solana is now more appealing to consumers looking for liquidity while still taking part in network validation because of its liquid staking functionality.
Through derivative tokens, users can keep liquidity while staking tokens through liquid staking. Additionally, lowering the entry hurdle has increased Solana’s DeFi activity. Furthermore, the increase in the liquid staking ratio from 2% to 7.06% is a reflection of the Solana ecosystem’s growing need for liquid staking.
Its growing network engagement is shown by Solana’s market moves, particularly its increase in TVL and liquid staking. Because it is more staking-friendly than Ethereum, Solana is even more well-known in the PoS blockchain space.
Though Solana has experienced a sharp increase in value, Ethereum remains the most valuable cryptocurrency in terms of total money staked. This shows how well-established Ethereum is on the blockchain.