Ethereum Records Notable Spike in Liquid Staking

The growing popularity of liquid staking has seen the value locked in 11 Ethereum-based protocols reach over $11 billion as of February 7, 2023. The trend has been driven by the Beacon chain contract, which holds 16.47 million ether worth $26 billion and cannot be withdrawn until the March hard fork. The 11 decentralized finance protocols hold 41% of the total, or 6.87 million ether.

Over $11 Billion Value Locked in 11 Ethereum-based Protocols, Lido and Coinbase Lead the Trend

Liquid staking allows for the exchange of ether for tokenized versions of the coin, enabling holders to earn rewards while still having a liquid form that can be sold at any time without relying on a custodian. The staked ether is held within various protocols, and the platforms handle the exchange for minting and redemption processes. The total value locked in these protocols stands at over $11 billion, with Lido holding the largest share at 73%. Last month, Lido’s locked value increased by 4.27% to $8.18 billion.

Coinbase’s wrapped ether platform has also contributed to the growing popularity of liquid staking, with 1,081,304 ETH locked into the platform and a 5.74% increase in value locked last month. The Coinbase wrapped ether platform accounts for 15.72 percent of the market share, worth $1.76 billion. Meanwhile, Rocket Pool and Frax Ether saw the largest gains over the past month, with a 10.71% and 76.73% increase in locked value, respectively.

In conclusion, liquid staking is proving to be a popular trend in the Ethereum network, as the value locked in 11 protocols exceeds $11 billion. The trend is driven by the Beacon chain contract and the increasing popularity of liquid staking platforms such as Lido and Coinbase’s wrapped ether. With the trend showing no signs of slowing down, the value locked in liquid staking protocols will likely continue to grow in the future.

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