by series data From DefiLlama, Ethereum Liquid Staking derivatives have grown in total value in recent months, with total cryptocurrencies closing at record numbers. Staking Liquid derivatives platforms now hold more than 10 million ETH locked, bringing the total value locked (TVL) close to $20 billion across the various protocols.
ETH Liquid Staking derivatives
With Ethereum 2.0 staking now live, many ETH investors have turned to staking liquid derivatives such as Lido and Rocket Pool. Liquidity has gained immense popularity because it offers an innovative way for ETH holders to earn a return on their holdings while also having access to funds to carry out other activities.
The top protocols are Lido, Coinbase Wrapped, and Rocket Pool, which collectively hold more than 9 million ETH locked. Lido currently dominates the ETH Liquid Staking derivatives market, with a market share of 74.46% and holding over 7.54 million ETH shares.
Lido dominates liquid staking market | Source: DeFiLlama
Taking into account the current price of ETH, this comes to a total value locked (TVL) of $14.8 billion. Lido also witnessed a growth of 1.86% and 7.06% over the past week and month, respectively.
The ETH piled on Coinbase has also seen an increase in the number of investors, growing by over 3.06% in the past week alone.
On the other hand, the Tranchess Ether protocol witnessed the largest growth over the previous month, increasing its total value locked by more than 375%.
The total accumulated value of ETH 2.0 exceeds $46 billion
The total amount held in ETH 2.0 contracts has been steadily rising since the beginning of the year. As Ethereum moves to a Proof of Stake consensus mechanism, validators are required to lock their digital assets through staking to participate in the consensus process and continue adding blocks to the blockchain. This has led to the growth of “liquidity” derivatives that allow their holders to participate in Ethereum while retaining liquidity.
according to data From Glassnode, a blockchain data and intelligence platform, the cumulative amount currently deposited in ETH 2.0 contracts is now an all-time high of over $45 billion.
This represents over 20% of the total supply of ETH now locked into ETH 2.0 contracts. The progress so far points to a very promising future for Ethereum and its transition to Ethereum 2.0.
ETH maintains position above $1,960 | Source: ETHUSD on TradingView.com
Featured image from Unsplash, chart from TradingView.com