Since the start of the year, the amount and value of liquid staking derivatives (LSDs) have increased dramatically; since January 6, 1.56 million ether have been added to LSD protocols. In the past two months, the total value of Ethereum kept has increased by $26.85 billion.
The LSD Market Is Booming: Ethereum Holdings Passs $54 Billion Mark
The price of Ethereum (ETH) has risen by 12.5% in the last week and by 56.9% in the last month. On Sunday at 5:15 p.m. Eastern Time, the price of ETH was just over $3,900 per token. The value of assets in liquid staking derivatives (LSDs) has increased to $54.34 billion, or more than half of the total value in decentralized finance (defi) protocols, as a result of the increase in the price of ETH relative to the US dollar.
Starting on January 6, 2024, data shows that 1.56 million ethereum has been amassed over the previous 64 days. On that day, 12.31 million ether worth $27.49 billion were initially secured. As of right now, there are 13.87 million ether in circulation, valued at $54.34 billion—a $26.85 billion rise. Lido Finance, which is in charge of 9.85 million ETH, holds a substantial 71.04% of the ethereum (ETH) that has been safeguarded. In second place, Rocket Pool is protecting 1.13 million Ethereum worth $4.41 billion.
Though they individually handle less than a million ether, Binance, Mantle, and Stakestone are noteworthy for following Lido and Rocket Pool’s example. 339,422 ETH are held on Stakestone’s platform, whilst 891,881 ETH are managed using Binance’s liquid staking derivative technology. Other notable companies are Frax, Swell, Coinbase, Stader, and Stakewise; Mantle has grown by the greatest amount during the last 30 days, at 25.78%. Coinbase and Frax saw decreases of 1.95% and 3.79%, respectively
Millions of ether are streaming into LSD platforms as a result of the widespread interest in liquid staking protocols since their launch. Although Lido maintains its advantage, its rivals are progressively climbing the ranks.
What are your thoughts on the 2024 growth that LSDs have experienced? Please feel free to discuss this topic in the comments area below.