Analysis of the Solana Liquid Staking Market: Four Major Participants Compete for TVL Recovery

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Analysis of the Solana Liquid Staking Market: Four Major Participants

As the cryptocurrency market warms up, Solana (SOL) has risen to the sixth position by market capitalization, with its staking assets scale second only to Ethereum among all proof-of-stake (PoS) blockchains. However, the capital concentration of decentralized finance (DeFi) applications in the Solana ecosystem is relatively low, with a total locked value (TVL) of $1.137 billion, only 11.3% of its historical peak.

In the TVL of Solana, liquid staking projects play a key role and are an important factor in driving the recovery of TVL. Among them, Marinade and Jito occupy a significant position with the highest TVL, highlighting the importance of the liquid staking category. This article will delve into the main participants in the Solana liquid staking space and conduct a comparative analysis of their strategies and market performance.

Solana staking market analysis: Four driving forces in the liquid staking sector

Solana staking overview

As of December 12, the market cap of SOL is $30.53 billion, with a staking market cap of $27.62 billion, a staking ratio of 69.18%, and a staking amount of 391 million SOL. The inflation rate is 6.75%, and the reward rate is 6.87%. The staking market cap of SOL ranks second among all PoS public chains, second only to ETH; the staking ratio is also relatively high among PoS public chains with a larger market cap.

The Solana network has a total of 1,986 validators, with the top-ranking validators offering an APY of nearly 8%, with no commission. To reward SOL holders and enhance network security and censorship resistance, the Solana Foundation launched the "staking pool program." Data shows that a total of 16.82 million SOL is locked in the staking pool, with an average APY of 6.68%, accounting for about 4.3% of the total staking amount.

Solana Staking Market Analysis: The Four Horsemen of Liquid Staking

Analysis of Major Liquid Staking Projects

1. Marinade Finance

Marinade Finance is one of the earliest liquid staking protocols in the Solana ecosystem, launched on the mainnet in August 2021. Users can stake SOL to receive mSOL, and the staking rewards are directly accumulated in mSOL.

Features:

  • Provide native stake service
  • 705.8 million SOL staked, the most on Solana
  • TVL 777 million USD, highest on Solana
  • stake yield 6.543%
  • The staking volume increased by 31.22% in the past 30 days.

Governance Token MNDE:

  • Circulating Market Cap $85.99 million
  • Total market capitalization of $356 million
  • Increased by 22.2% in the past 7 days

2. Jito

Jito launched its liquid staking platform at the end of 2022. Users can stake SOL to earn JitoSOL, with staking rewards directly accumulating in JitoSOL.

Features:

  • Develop MEV infrastructure for the Solana network
  • MEV收益部分分配给JitoSOL
  • stake amount 6.38 million SOL
  • TVL $455 million
  • stake yield 6.892%
  • The staking volume increased by 17.77% in the past 30 days

Governance Token JTO:

  • Circulating Market Cap: $342 million
  • Total market cap $2.973 billion
  • Increased by 46.6% in the past 7 days

3. BlazeStake

BlazeStake was launched in May 2022 and has rapidly developed recently due to the explosive growth of the Solana ecosystem. Users can stake SOL to receive bSOL, and the staking rewards are directly accumulated into bSOL.

Features:

  • Use Solana Labs official stake pool smart contract
  • The largest validator set
  • Allow users to liquid stake to specific validators
  • Stake amount 1.52 million SOL
  • TVL $108 million
  • stake yield 6.232%
  • The staking volume increased by 177% over the past 30 days.

Governance token BLZE:

  • Total market capitalization is $38.84 million
  • Increased by 66.5% in the past 7 days

4. Lido

Lido launched its liquid staking service on Solana in September 2021, but the development did not meet expectations, and it announced in October that it would stop accepting new stakes. Users who stake SOL can receive stSOL, and the staking earnings accumulate in stSOL.

Features:

  • Stake amount 887,000 SOL
  • TVL 63.4 million USD
  • stake yield 6.717%
  • The staking volume has decreased by 41.43% in the past 30 days.

Governance Token LDO:

  • Circulating Market Cap: $2.095 billion
  • Total market value of 2.356 billion USD
  • down 6.7% in the past 7 days

Solana Stake Market Analysis: Four Pillars of Liquid Staking

Solana staking market analysis: four horses of the liquid staking field

Solana Staking Market Analysis: The Four Horses of the Liquid Staking Field

Solana Stake Market Analysis: The Four Pillars of the Liquid Staking Field

The Application of LST in DeFi

Liquidity staking tokens (LST) from various projects are widely supported in Solana DeFi applications:

  • Lending protocols: marginfi and Solend support mSOL, JitoSOL, bSOL as collateral.
  • DEX: The liquidity of mSOL/SOL and bSOL/SOL in Orca is relatively high.

Incentive measures have a significant impact on the growth of staking volume and LST liquidity:

  • Blaze offers the highest incentives, with a 15.37% APR BLZE subsidy for deposits on Solend.
  • Marinade provides a MNDE subsidy with an APR of 1.98%
  • Jito has not yet incentivized the adoption of JitoSOL in DeFi.
  • Lido token distribution is nearing completion, unable to continue incentivizing.

Solana stake market analysis: The four horses of the liquid staking field

Summary

There are various representative liquid staking solutions within the Solana ecosystem, each with its own characteristics: Marinade is the earliest and provides native staking; Jito offers higher yields through MEV infrastructure; BlazeStake allows staking to specific validators; Lido represents a multi-chain liquid staking service.

However, the total amount of liquid staking remains low, accounting for only 4.3% of all staked SOL. Diversified solutions have also led to a dispersion of liquidity, and new competitive solutions may emerge in the future. Incentives are still crucial for the growth of staking volume and LST liquidity, as evidenced by the rapid growth of Blaze and Lido's exit.

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MechanicalMartelvip
· 07-22 06:59
The SOL bull run is stable now.
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quietly_stakingvip
· 07-21 23:19
You should stake Sol hard!
View OriginalReply0
UnluckyValidatorvip
· 07-21 23:17
The sol bull run is not far away!
View OriginalReply0
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