Liquid staking solutions like Lido and Rocket Pool now have more total value locked (TVL) than decentralized exchanges (DEXs), making them the top category of DeFi protocols, according to data from the cryptocurrency analytics platform; DeFillama.
For the first time, the Liquid Staking category has surpassed DEXes in total value locked, making it the leading category in DeFi by TVL dominance pic.twitter.com/HQ0Ug8UweR
– DefiLlama.com (@DefiLlama) April 26, 2023
TVL is a metric that measures the dollar value of all cryptocurrencies locked in a protocol’s smart contracts.
Liquid staking protocols have just taken the top spot. On April 13, there was only $17.19 billion in cryptocurrency locked in liquid staking contracts, versus $18.89 billion in DEXs, according to the information on file. However, DEXs have seen a decrease of USD 1.66 billion to USD 17.2 billion, while liquid staking solutions have seen an increase of USD 280 million to USD 17.47 billion, which gives them first place.
Liquid staking protocols are pools that lock up cryptocurrencies on behalf of users. These protocols also issue tokens to users that represent their deposited cryptocurrency. Since these tokens can be used in DeFi applications, liquid staking protocols allow users to lock up their coins and use them in other applications at the same time.
According to DeFiLlama data from May 1, Lido remains the top betting protocol, with $11.54 billion in cryptocurrency locked in its contracts. Coinbase Wrapped Staked Ether (CBETH) is a distant second with $2.19 billion locked, and Rocket Pool (rETH) is third with $1.46 billion. The remaining protocols have less than $1 billion TVL each, but total $2.22 billion.
The first liquid staking protocol, Lido Staked Ether (stETH), launched in 2020. Liquid staking has become more popular as Ethereum moved to Proof of Stake and enabled withdrawals.
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