Ethereum’s Liquid Staking Revolution: A $20 Billion Market Emerges in 2023
As of October 2023, the Ethereum blockchain has witnessed a steady rise in liquid staking applications.
Currently, 23 liquid staking derivative (LSD) platforms collectively hold 12.4 million ether, valued at over $20 billion. Dominating the market are the top three LSD protocols—Lido, Rocket Pool, and Coinbase’s Wrapped ETH platform—accounting for 89.18% of all locked ether.
Lido Finance, established in 2020, leads the pack with 8.79 million ETH, representing 70.96% of the LSD market share. STETH, Lido’s staked ether token, ranks among the top ten tokens by market cap. Coinbase’s Wrapped ETH platform holds around 1.3 million ethereum valued at $2.26 billion, while Rocket Pool boasts 951,264 ETH as the third-largest LSD holder.
These liquid staking derivatives provide users with flexibility, liquidity, and rewards for staking their ETH in liquid form. Despite some criticisms, they have produced an average yield of 4.4% APY since January 2022, according to Coingecko research, cont
Clever Robot News Desk 4th October 2023
