The Solana network’s liquid staking domain is witnessing significant growth, highlighted by a 1.76% rise in the liquid staking ratio this quarter. The count of Liquid Staking Tokens (LSTs) has impressively doubled, signaling a shift in the market as the dominance of the leading three providers has diminished from 93% to 68.7%.
**The Primary Driver:**
@sanctumso
The generous airdrop from
@jito_labs
has cast a spotlight on Solana’s liquid staking. The liquid staking ratio saw a 2% uptick from Q4 2023 to Q1 2024.
Sanctum has emerged as a frontrunner. The debut of INF, Sanctum Router, and Sanctum Reserve, has…
— Tom Wan (@tomwanhh)
July 1, 2024
Sanctum’s roll-out of innovative technologies and incentives has been pivotal in this surge. The Jito Labs airdrop has particularly highlighted liquid staking, contributing to a 2% boost in the liquid staking ratio from Q4 2023 to Q1 2024. The introduction of the Sanctum Router and Sanctum Reserve has eased market entry, setting the stage for a rapid expansion in Solana’s liquid staking arena.
**LSTs on the Rise:**
The tally of LSTs on
Solana
has soared to 53, nearly doubling since last quarter. While this growth is nascent compared to the potential of hosting thousands of LSTs, it marks a crucial step in the ecosystem’s development.
Previously, a handful of major players dominated the scene, akin to Ethereum’s market where Lido commands a 70% share. However, Solana’s landscape is evolving. Sanctum’s breakthroughs have paved the way for high-caliber projects from entities like Helius Labs, Solana Compass,
Jupiter Exchange
, and Drift Protocol, disrupting the status quo and fostering a more varied and robust market.
**Market Diversification:**
Lido has long held sway over Ethereum’s Liquid Staking Sector with a 70% market share. Before Sanctum’s entry, Solana was mirroring these dynamics, with top LSTs (jitoSOL, mSOL, bSOL) representing 93% of the market…
— Tom Wan (@tomwanhh)
July 1, 2024
Among the newcomers, Jupiter Exchange’s jupSOL has made a significant splash. It has overtaken bSOL in market capitalization, boasting a total value locked (TVL) of $329 million and experiencing a 22% growth over the last month. This surge is partly attributed to its integration with Kamino Finance, where jupSOL has become the most favored LST, amassing $220 million, and offering the highest annual percentage yield (APY) at 21%.