SOL liquid staking is set to expand five fold, potentially get to $18B

Currently, there is great_utilization_ of Liquid staking on Solana which can grow over five folds within the nascent investors. Delegated staking is capital efficient as it means staked tokens can be used in mainstream decentralised finance applications, making liquid staking more appealing to users.

Solana’s liquid staking tokens (LSTs) may experience exponential adoption since there is a new staking community around the network, as stated by a Bybit Research report. According to Bybit, Solana’s liquid staking market could one day be worth $18 billion with the current TVL standing at $3. 8 billion as stated by DefiLlama.

There was an emphasis placed by Bybit Research which pointed out that Solana has great potential in the liquid staking sector owing to the strong community, More so, if compared to Ethereum’s liquid staking market, Solana is still a822862 map with much potentiality for expansion.

At the moment, the most popular DeFi application on the Ethereum network is liquid staking with total value locked at $39. 5 billion. However, one has to worry about centralization because Lido dominates Ethereum’s liquid staking market cap at over 57%. To eliminate such risks, Bybit affirms that the danger is not the same for solana since various players operate it and there won’t be a single player who can give such a giant push.

One of the dynamics seen in this level is driven by Retail Investors. With a growing number of liquid staking products that are backed by exchanges such as Bybit’s bbSOL, the entrance to DeFi staking market for casual users will be entrance less, thus enabling investors to participate in Solana DeFi opportunities.

Bybit explained that “Liquid staking on higher liquidity and flexibility will also attract retail investors; such derivatives enable them to use their tokens for operation inside DeFi. ”

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