Liquid Staking TVL Now Largest Among DEXs
By Shubham Joshi
The total value of assets locked (TVL) in liquid staking derivatives (LSD) protocol rose to $17.47 billion – making it the largest DeFi category, according to Defillama data.
The trend underlines massive increase in adoption of liquid staking witnessed in 2022 following the boom of decentralized finance (DeFi) opportunities.
Liquid staking protocols enables users to earn staking rewards while providing them liquidity for other crypto-based activities. Examples of this protocol include Lido, Rocket Pool, Frax Ether etc.
TVL is a metric that measures the dollar value of all cryptocurrencies locked within a protocol’s smart contracts.
Liquid staking protocols have taken the top spot. According to reports, on April 13, there were only $17.19 billion in crypto locked in liquid staking contracts, while $18.89 billion locked in DEXs. However, DEXs have seen a $1.66 billion decline to $17.2 billion, while liquid staking solutions have seen a $280 million increase to $17.47 billion, giving them the top spot.
Earlier this year, liquid staking protocols overtook lending protocols to become the second-largest DeFi category. Post the Shapella upgrade, liquid staking protocols attracted enormous interest from users and investors in the staking scenario.
The top 10 liquid staking solutions have experienced an average TVL increase of 10% since the Shapella upgrade last month.
According to data from Blockchain analytical firm Nansen,reports revealed that more Ethereum is being deposited than it is being withdrawn since the upgrade.
Between April 13 and May 1, TVL on decentralized exchanges fell by $1.66 billion, meanwhile TVL rose by $280 million on liquid staking protocols.
According to statistics from crypto analytics portal DefiLlama, liquid staking solutions like Lido and Rocket Pool currently have more total value locked (TVL) than de-centralisedexchanges (DEXs), making them the top category among DeFiprotocols.
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