Solana's liquid staking tokens show significant growth, led by dominant market participants.
Liquid staking adoption remains limited, highlighting the untapped potential in decentralized finance.
Increased demand and spikes in activity reflect the growing interest in liquid staking solutions.
Solana Liquid Staking Tokens (LSTs) have seen a surge in market capitalization, reaching $8 billion by 2024. This marks substantial growth in the sector over the past two years.
Despite Solana’s 60% staking rate, only 6% of staked tokens are from liquid staking solutions. This leaves significant unused capital for decentralized finance (DeFi) applications. Dominant players in the space such as JitoSOL, mSOL, and jupSOL have fueled this expansion. JitoSOL alone holds 41.5% of the market share.