Investors in a blockchain network cryptocurrency There has been increasing interest in liquid staking protocols, a system of earning rewards in exchange for unit locking. According to the latest data, the value collected in Liquid Staking has outstripped decentralized lending platforms.
According to data from DeFi Llama, the total value invested in liquid staking protocols reached $14.1 billion. In this way, these protocols are used in the cryptocurrency market. It has become the second largest industry.
Currently, decentralized exchanges are ranked first with $19.4 billion in locked values, liquid staking protocols second with $14.1 billion, and DeFi lending protocols third with $13.7 billion.
Interest revived
Experts noted that interest in liquid staking is reviving as the Shanghai update approaches, the update that will allow them to withdraw stashed ETHs on Ethereum.
Liquid staking has been the best performing crypto sector this year, with a 60% increase in total locked value.
Opening withdrawals on Ethereum is expected to improve overall liquidity.
There are 16.5 million locked ETH on the Ethereum Beacon Chain. 42% of them are locked through liquid staking protocols, especially Lido.
Lido (LDO) has surged 220% since the start of this year, outperforming ETH and BTC.
LDO holds more than 75% of the locked value in liquid staking protocols. LFO offers an annual return of 4.8% on staked ETH, 6% on Solana and 6.3% on MATIC.
Interest may continue to rise
Speaking to Coindesk, Markus Thielen, head of research and strategy at Matrixport, said that currently only 14% of Ethereum is staked and interest in staking will increase in the coming period.
In a recent study at Binance Researc, he stated that there may be more inflows into staking protocols after the Shanghai update.
The staking rate of popular altcoins is as follows:
What are Liquid Staking Altcoins?
According to CoinmarketCap data, the ranking of liquid staking protocols by market value is as follows:
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