According to data from crypto analytics platform DefiLlama, liquid staking solutions like Lido and Rocket Pool currently have a higher total value locked (TVL) than decentralized exchanges (DEXs), making them the leading category of DeFi protocols.
TVL is a measure of the dollar value of all cryptocurrencies locked in the protocol’s smart contracts.
The total value of the Liquid Staking category exceeds that of locked DEXs for the first time, making it the leading category in TVL-dominated DeFi pic.twitter.com/HQ0Ug8UWER
— DefiLlama.com (@DefiLlama) April 26, 2023
On April 13, only $17.19 billion in cryptocurrencies was locked in liquid collateral contracts, compared to $18.89 billion in DEXs. However, DEXs fell by $1.66 billion to $17.2 billion, while liquid staking solutions raised $280 million to $17.47 billion, putting them at the top of the list.
The Liquidity Staking Protocol is a staking pool that stakes cryptocurrencies on behalf of users. These protocols also issue tokens to the user, representing the cryptocurrency he or she has deposited. Since these tokens can be used in DeFi applications, the liquid staking protocol allows users to stake and use them in other applications.
Lido (stETH) remains the largest staking protocol with $11.54 billion in cryptocurrencies locked in its contracts, according to data from DefiLlama on May 1. Coinbase Wrapped Ether (CBETH) is second with $2.19 billion in locked volume, and Rocket Pool (rETH) is third with a TVL of $1.46 billion. The remaining agreements each have a TVL of less than $1 billion, but total $2.22 billion.
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As reported by Cointelegraph