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The value of Ethereum staked in Liquid Staking protocols reached 12 billion dollars

The number of locked Ethereum coins in “Liquid Staking” services exceeded 7 million.

According to Valx and quoted by Bein Crypto, the data of the DefiLlama site shows that the total value of the mentioned tokens reaches about 12 billion dollars. The top three liquid staking protocols have a major share of this market and together they are responsible for staking 95% of these 7 million ethers.

Lido protocol is the biggest player in this field with a share of more than 70%. This protocol hosts more than 5 million ethers with a value of about 8.7 billion dollars. Coinbase’s staking service ranks second with 1.1 million Ether, and the Rocketpool and Frax Ether DeFi protocols host a total of 500,000 staked Ether.

Liquid staking protocols’ share of Ethereum’s indirect staking market

The number of Ethers locked in China’s Staking Beacon smart contract grew after the announcement that it was prioritized to release harvests after the “Shanghai” update. In addition, the pressure of the United States Securities and Exchange Commission (SEC) on the Kraken exchange to stop the staking service of this company has caused more users to favor decentralized liquid staking protocols.

Nevertheless, the tightening of the staking rate has not led to a good profit for investors. Although a total of more than 16 million ethers have been staked in the Ethereum 2 smart contract, most stakers are currently at a loss.

According to data from Binance Research, about 69% of Ethereum stakeholders are already in the red because they took action when Ethereum was above the current $1,600. The interesting thing to note is about 2 million Ether, which is staked in the price range of 400 to 700 dollars. You can see the list of the number of staked ethers along with the Ethereum price at the time of the stake in the chart below.

The price of staked ethers at the time of stake
The price of staked ethers at the time of stake

The mentioned group (investors in profit) is probably the core of the owners of illiquid assets because it was not so well known at the time of “liquid staking”. Also, this group probably belongs to the category of ethereum maxis and extreme lovers of ethereum, and they will not sell it even if withdrawal is released.

Ethereum price has grown by 42% since the beginning of this year. Also, since the migration to the proof-of-stake (PoS) consensus model, the supply of this currency has contracted, and so far more than 28,000 ethers have been withdrawn from circulation.

The value of Ethereum staked in Liquid Staking Protocols has reached 12 billion dollars. The article was first published on Wallex Blog. appeared.


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