The Solana network is experiencing an increased influx of users and a \u201cbreak-through moment,\u201d thanks to the introduction of liquid staking on the blockchain.<\/p>\n
A new report<\/a> by the leading cryptocurrency exchange, Bybit, stated that Solana\u2019s liquid staking model, especially the exchange-launched liquid-staked SOL, would mobilize masses and accelerate the onboarding of retail users in the ecosystem.<\/p>\n As a proof-of-stake network, staking<\/a> is crucial to the security of the Solana ecosystem. While the process involves users delegating their SOL to one or more validators, which participate in network consensus and validate transactions for rewards, liquid staking offers much more.<\/p>\n Liquid staking provides flexibility, liquidity, and potential for higher yields because participants can trade their liquid staking tokens (LSTs) on other decentralized finance (DeFi) protocols while maintaining exposure to their staked positions. Participants also get to stake their SOL via a staking pool that distributes their assets across a wider set of validators, enhancing decentralization and offering extra rewards.<\/p>\n Currently, Solana\u2019s 68% staking ratio, stemming from $57 billion worth of staked SOL, outpaces Ethereum\u2019s 28%; however, only 6.5% ($3.6 billion) of Solana is involved in liquid staking, compared to roughly one-third of Ethereum. Bybit believes this presents an opportunity for growth on Solana\u2019s liquid staking landscape.<\/p>\n Using Ethereum\u2019s LST<\/a> data, Bybit predicts that Solana\u2019s LST market has the potential to increase 5x (up to $18 billion) of its current size, especially if the latter\u2019s LST ratio becomes as high as the former\u2019s.<\/p>\n Bybit asserted that exchange-launched liquid-staked Solana tokens could increase activity and adoption on the network, creating an environment that would facilitate the growth of liquid-staking solutions. The exchange has become the first to launch its SOL liquid staking token (bbSOL) as it looks to become a de facto bridge between retail investors and the broader ecosystem.<\/p>\n Meanwhile, liquid staking on Solana is already showing signs of growth, with at least half of the network\u2019s ten-largest DeFi protocols by total value locked now offering such services.<\/p>\n \u201cWith the gradual expansion of Solana\u2019s DeFi ecosystem, we expect this growth trend to form a positive feedback loop as the demand for LSTs will likely increase. This increased demand, in turn, may attract more developers, protocols, and users to the Solana ecosystem, further fueling Solana\u2019s DeFi boom as we have seen from the early days on Ethereum,\u201d Bybit stated.<\/p>\n The post This is How Liquid Staking Could Fuel Mass Adoption and Growth on Solana: Report<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" The Solana network is experiencing an increased influx of users and a \u201cbreak-through moment,\u201d thanks to the introduction of liquid staking on the blockchain. A new report by the leading cryptocurrency exchange, Bybit, stated that Solana\u2019s liquid staking model, especially the exchange-launched liquid-staked SOL, would mobilize masses and accelerate the onboarding of retail users in […]<\/p>\n","protected":false},"author":0,"featured_media":6607,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-6606","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/6606"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6606"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/6606\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/6607"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}The State of Liquid Staking on Solana<\/h2>\n
Room for Growth<\/h2>\n