Solana LSTs Market Cap Hits $7.5B

The Solana ecosystem has seen a significant surge in the supply of liquid staking tokens (LSTs), with the total market cap for these tokens reaching an impressive $7.5 billion as of January 10, according to on-chain data from Dune.

The growth in the LST market cap has been driven by the notable increases in several leading liquid staking tokens, including Jito staked SOL (jitoSOL), Binance staked SOL (bnSOL), and Marinade staked SOL (mSOL). Among these, jitoSOL continues to lead the market with a dominant 37.6% market share, bringing its total market cap to over $2.8 billion. bnSOL and mSOL account for 20.2% and 14.1% of the market share, respectively, with market values of $1.5 billion and $1.05 billion.

Other significant LSTs in the Solana ecosystem include Jupiter’s jupSOL, Solayer’s sSOL, Bybit’s bbSOL, and Laine’s laineSOL.

Data from Dune also shows that the total market cap of staked SOL currently stands at $82.66 billion, with liquid staking tokens accounting for a 9.07% share of that total. This reflects the increasing prominence of LSTs in Solana’s DeFi ecosystem.

Market Trends and Declines in TVL

Despite the overall growth in the market cap of Solana’s LSTs, there has been a slight decline in the total value locked (TVL) in some major liquid staking protocols. For instance, the TVL in Jito and Marinade has decreased by 19% and 15%, respectively, over the past month. On the other hand, Binance staked SOL (bnSOL) has seen a notable increase of more than 29% in its TVL during the same period. This surge can be attributed to the launch of bnSOL in August 2024 by Binance, which has contributed to its growing popularity.

The Role of LSTs in DeFi

Liquid staking protocols and their associated tokens are playing an increasingly important role in the decentralized finance (DeFi) market. These protocols enable users to stake SOL tokens and receive LSTs in return, such as jitoSOL or bnSOL. These tokens can then be traded or used on other DeFi platforms, allowing holders to earn additional rewards while their staked assets remain locked.

The rise of liquid staking is making it easier for Solana holders to participate in staking while maintaining liquidity and flexibility in managing their assets. This development reflects a broader trend in DeFi, where liquid staking is seen as an essential tool for both staking and decentralized finance participation.

As the Solana ecosystem continues to grow, liquid staking tokens are expected to play a critical role in enhancing the usability and utility of SOL within the broader DeFi space.