Liquid staking protocols show impressive growth in 2023

Lido Finance captures a dominant 74% market share in liquid betting

In a year marked by significant developments in the Web3 industry, the liquid betting market has soared to new heights of success, emerging as the largest sub-sector of the DeFi economy.

According to recent data from Token Terminal, liquid staking protocols have contributed immensely to this growth, offering a stable fee stream that rivals the industry's best.

Leading the charge in the liquid betting market is Lido Finance, which has secured a staggering 74% market share.

This dominance comes as a result of Lido's strategic maneuvers and the execution of Ethereum's Shapella hard fork, a key development that allowed users to withdraw their ETH holdings.

Lido's market share has not only been maintained but also increased throughout the year, reflecting its resilience against new entrants and ETH withdrawals.

Amidst this dynamic landscape, the total value of assets staked through liquid staking protocols has witnessed remarkable expansion, surging from $7.9bn to an impressive $18.8bn.

This doubling of value in the year to date underscores the growing interest in liquid betting protocols, which enable users to participate in staking while retaining the flexibility to explore higher return opportunities within the DeFi ecosystem.

Liquid staking protocols stand out for providing a steady fee stream, enhancing their appeal within the industry. The stability of these fees, as highlighted by the Token Terminal analyst, sets them apart from the fluctuating fees associated with other trading platforms and decentralized exchanges (DEXs).

New market entrants have further invigorated the sector. Liquid Collective and Swell, both of which introduced their own Liquid Stake (LSt) tokens earlier this year, have managed to amass a combined total of over $100m in staked assets. The aggregate market capitalization of all LSTs now stands at $16.3bn, exhibiting a 16% growth over the past two months.

The success of Lido Finance and the surge in assets staked through liquid staking protocols signify a promising trajectory for this thriving sub-sector.

With stable fee streams and an expanding market presence, liquid betting has redefined the possibilities within the Web3 industry, solidifying its position as a powerhouse within DeFi.

Crypto betting and casino platforms have also embraced liquidity staking introducing their own staking programs. In July, Fairspin's TFS Token introduced liquidity staking, enabling token holders to earn rewards. 

Looking for your next crypto casino? Check out Mega Dice or FortuneJack!

Written by Silvia Pavlof

Silvia has explored various forms of writing, ranging from content creation for social media to crafting movie scripts. Drawing on her experience as a journalist specializing in the gambling sector, she is currently investigating the impact of cryptocurrencies and blockchain on traditional gambling and iGaming.

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