Liquid staking protocols TVL may ‘flip’ DEXs TVL quickly

The whole worth of property locked (TVL) on liquid staking protocols is close to that of decentralized exchanges (DEXs), based on Defilama knowledge.

The 81 liquid staking protocols tracked by DeFillama have a cumulative TVL of $19.31 billion — with Lido being the dominant participant within the sector.

In the meantime, the entire worth of property locked on the 799 DEX protocols sits at $19.48 billion, based on DeFillama knowledge.

DeFi analyst Patrick identified that the “flippening” may happen any day now.

Liquid staking protocols enable customers to earn staking rewards whereas offering them liquidity for different crypto-based actions. Examples of this protocol embrace Lido, Frax Ether, Rocket Pool, and so on.

Earlier within the 12 months, liquid staking protocols grew to become the second-largest DeFi class when it usurped the lending protocols class. On the time, the liquid staking protocols loved huge curiosity as a result of anticipated Shapella improve.

Liquid staking protocols rise post-Shapella

Because the Shappella improve, the highest 10 liquid staking protocols have seen their TVL develop by a mean of 10% within the final seven days. For context, the variety of Staked Ethereum on Lido (LDO) crossed 6 million — value $12.93 billion— on April 18, based on DeFillama knowledge.

starcrypto’s knowledge corroborates the growing worth of liquid staking platforms. In keeping with the information, the market cap of the protocols within the sector grew to $4.44 billion within the final seven days.

Blockchain analytical agency Nansen’s dashboard confirmed that extra Ethereum is being deposited than they’re being withdrawn for the primary time for the reason that community accomplished the Shapella improve.

In keeping with the dashboard, over 85,000 ETH was deposited within the final 24 hours, whereas lower than 22,000 ETH had been withdrawn throughout the identical interval.

In the meantime, blockchain analyst Lookonchain reported that some addresses withdrawing their staked ETH  had been instantly re-staking them. The on-chain sleuth reported two whales that staked over 50,000 ETH tokens by way of the liquid staking protocol, Agility.

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