As of Feb. 7, 2023, the value locked in 11 Ethereum-based liquid staking protocols has risen above $11 billion, with Lido, Coinbase, and Rocket Pool recording 4-10% gains over the past month. Lido holds more than 73% of the total value locked (TVL) out of the 6.87 million ether held by the 11 liquid staking platforms. More than 15% of the liquid staking TVL is being staked with Coinbase’s wrapped ether.

Lido Leads the Pack With 73% of Total Value Locked in Ethereum Liquid Staking Industry

Staking Ethereum has become a highly sought-after trend since its introduction on the network’s Beacon chain. The Beacon chain contract has 16.47 million ether locked, worth $26 billion, that cannot be withdrawn until the upcoming March hard fork. A significant portion of this locked ether is held within liquid staking protocols, as 11 decentralized finance (defi) protocols hold 41% of the total, or 6.87 million ether.

Ethereum Liquid Staking Trend Continues to Swell; 5 Platforms Control 97% of Market
Total value locked on Ethereum-based liquid staking platforms on Feb. 7, 2023.

Liquid staking involves exchanging ether for tokenized versions of ether. This allows holders to earn rewards while still having a liquid form of the coin that they can sell at any time without relying on a custodian. The staked ether is held within various protocols, and the platforms handle the exchange for minting and redemption processes. Out of the 41%, which is valued at more than $11 billion, Lido holds 73% of the total value locked (TVL). Lido’s TVL saw a 4.27% increase last month, and its value locked is around $8.18 billion today.

Ethereum Liquid Staking Trend Continues to Swell; 5 Platforms Control 97% of Market
Top five liquid staking platforms on Feb. 7, 2023.

Coinbase’s wrapped ether has 1,081,304 ethereum (ETH) locked into the platform and the TVL has gained 5.74% last month. The Coinbase wrapped ether platform TVL is 15.72% of the market share and the stash is worth $1.76 billion. The next two largest liquid staking platforms saw the biggest gains over the last month out of the top five projects. Rocket Pool’s TVL climbed 10.71% in 30 days and during the same time frame, Frax Ether’s TVL increased by 76.73%. Rocket Pool has around 387,016 ETH locked and Frax Ether has a total of 87,134 ether.

Stakewise is the fifth-largest liquid staker, with 84,481 ether locked on Feb. 7, 2023, valued at $136 million. Frax Ether holds a 1.27% market share, while Stakewise holds 1.23% of the 6.87 million ether. The other six decentralized finance liquid staking platforms hold a mere 2.6% of the $11 billion in value, while the top five liquid stakers control 97.4%.

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What do you think about the continued growth of Ethereum Liquid Staking protocols? Share your thoughts in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for News about the disruptive protocols emerging today.

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