LUNA and SOL Push Liquid Staking Tokens Market Cap To $20 Billion Again

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Liquid staking tokens remain of great interest to crypto users and DeFi enthusiasts. Interestingly, there is a strong competition going on between wrapped Luna and wrapped Solana. It will be interesting to see which of them will catch up with Lido Staked Ether first.

Luna and Solana Liquid Staking Tokens Gain Ground

It is not too surprising to see a growing demand for liquid staking tokens. It is essential to have the option to stake an asset AND use it across DeFi protocols or other projects. For many, it is an excellent foray into creating a double revenue stream without relying on trading or watching price charts. It is a great gift to the crypto industry, even if only a handful of tokens are supported. 

Today, the liquid staking token market is dominated by Lido. The liquid staking provider has enabled support for all top assets, and speculators have begun taking notice. Lido Staked Ether has the highest market cap of all liquid staking coins today, at just over $10.5 billion. These users earn ETH staking rewards and retain their liquidity to explore more money-making opportunities.

Lido also supports Solana, Matic, and Luna. All coins have proven to be somewhat successful, creating an exciting competition between STSOL and STLUNA. Both currencies are $8 million apart in market cap, confirming further interest in liquid staking increases. However, neither asset is close to rivaling STETH in market cap by a long shot. That situation may change, although SOL and LUNA holders prefer other options.

Interestingly, the momentum seems to favor Bonded Luna (BLUNA), and Marinade staked SOL (MSOL). BLUNA has a market cap of $7.5 billion, which is 30 times higher than STLUNA. MSOL’s market cap is $656 million, which is twice as high as STSOL. Very interesting developments confirm the rivalry among liquid staking tokens. However, it also shows liquid staking is the future for any network supporting proof-of-stake today or in the future. Bonded Luna is also supported by Lido, just like Staked Luna, and can be used as collateral to lend UST against bLUNA to earn ANC rewards. However, that option forfeits staking rewards.

Other Currencies To Look Out For

The overall liquid staking market is still relatively small. Besides Lido, and Marinade, there is ample room for other competitors to emerge. BENQI, Ankr, pStake, sOcean, StakeHound, and others all try to impact the market in various ways It is also interesting to see them provide support for assets like AVAX, NEAR, ATOM, XPRT, and other cryptocurrencies.

It will be exciting to see what the future holds for liquid staking. With a total market cap of just under $20 billion, liquid staking tokens have become a crucial part of the cryptocurrency industry in recent months. As a result, it is plausible to assume their market share will continue to increase as holders can explore multiple revenue opportunities. 

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