Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The total value locked (TVL) in liquid staking protocols is approaching the levels seen in decentralized exchanges (DEXs), according to data from DeFiLlama.
DeFiLlama tracks 81 liquid staking protocols with a combined TVL of $19.31 billion, led by the dominant sector player, Lido.
Conversely, the TVL across the 799 DEX protocols tracked by DeFiLlama stands at $19.48 billion.
DeFi analyst Patrick noted that this “flippening” could happen at any moment.
Liquid staking protocols enable users to earn staking rewards while maintaining liquidity for other crypto activities. Key examples include Lido, Frax Ether, and Rocket Pool.
Earlier this year, liquid staking protocols became the second-largest category in decentralized finance (DeFi), surpassing lending protocols. This surge was driven by significant interest ahead of the Shapella upgrade.
Related Posts
Liquid staking protocols surge post-Shapella
Following the Shapella upgrade, the TVL of the top 10 liquid staking protocols has grown by an average of 10% over the past seven days. Specifically, the amount of staked Ethereum on Lido (LDO) surpassed 6 million tokens, valued at $12.93 billion, on April 18, according to DeFiLlama data.
Data from CryptoSlate supports the growing value of liquid staking platforms. The market capitalization of protocols in this sector increased to $4.44 billion over the last seven days.
A dashboard from blockchain analytics firm Nansen revealed that more Ethereum is being deposited than withdrawn for the first time since the network completed the Shapella upgrade.
The dashboard indicated that over 85,000 ETH was deposited in the last 24 hours, while less than 22,000 ETH was withdrawn during the same period.
Meanwhile, blockchain analyst Lookonchain reported that some addresses withdrawing their staked ETH were immediately re-staking them. The on-chain sleuth identified two whales that staked over 50,000 ETH tokens via the liquid staking protocol Agility.
