Liquid Staking Emerges as Dominant Sub-Sector in Decentralized Finance, Reveals Binance Report

Liquid Staking Dominates DeFi Landscape with Over 131% Growth and Record Total Value Locked (TVL)

The world of decentralized finance (DeFi) is witnessing a groundbreaking transformation as liquid staking emerges as the leading sub-sector, experiencing phenomenal growth of over 131% since the beginning of the year. According to a comprehensive report by Binance Research, liquid staking has now secured the top spot among DeFi sub-sectors, surpassing decentralized exchanges (DEXes) with an impressive difference of $6.8 million in Total Value Locked (TVL) on April 28th.

Liquid Staking – Empowering Users and Dominating DeFi

Liquid staking has emerged as the preferred method for Ethereum (ETH) staking, capturing a remarkable 37.1% share in the total ETH staking market. Unlike traditional staking, which necessitates locking up tokens for a fixed period to earn rewards, liquid staking introduces an innovative approach. Through a liquid staking token (LST), users can stake their tokens and earn yields while still maintaining liquidity. This groundbreaking feature enables users to freely trade, lend, and use their staked assets as collateral while reaping the benefits of staking rewards.

Liquid Staking’s Meteoric Rise

The ascent of liquid staking has significantly contributed to the overall growth of the DeFi space, particularly in the migration of users towards DEXes. As of June 30, liquid staking commands an impressive 24% market share among various DeFi categories, outpacing DEXes with their 17.9% share. Other DeFi categories like lending and bridge follow suit with 16.6% and 13% shares, respectively.

The rapid expansion of liquid staking is evident as it has bolstered its market share by an astounding 74%. In contrast, DEXes have experienced a decline from 23.2% to 17.9%, along with other sectors such as CDP, yield, and minor DeFi categories.

The Dominance of Lido DAO in Liquid Staking

While liquid staking’s growth is impressive, it’s important to note that the market remains largely concentrated on a few key protocols, with Lido DAO (LDO) monopolizing the scene. With a commanding 75.4% market share, Lido has firmly established itself as a first mover, enjoying a significant advantage in the liquid staking ecosystem. Lido’s dominance is further reinforced by its extensive integration network across diverse DeFi protocols, showcasing the protocol’s deep liquidity in the ecosystem.


As DeFi continues to revolutionize the financial landscape, liquid staking has emerged as a game-changer, taking the lead among various sub-sectors with its extraordinary growth and impressive Total Value Locked (TVL). Empowering users with liquidity while staking their assets has paved the way for DeFi’s evolution, as evidenced by the substantial migration towards DEXes and the notable rise of Lido DAO as a dominant force in the liquid staking market.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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