The most critical factors for a successful liquid staking token are liquidity, DeFi integration/partnerships, and multi-chain expansion support.
1. Despite a 60% Staking Rate, Only 6% ($3.4B) of Staked SOL Comes from Liquid Staking
Unlike Ethereum (32% liquid staking share), Solana’s staking ecosystem leans heavily on native delegation—a built-in feature simplifying SOL staking. Early Ethereum adopters relied on Lido as the primary gateway, while Solana users had direct alternatives.
2. Solana’s Liquid Staking Tokens (LSTs) Show Balanced Market Share vs. Ethereum’s Monopoly
- Ethereum: Lido dominates with 68% market share.
- Solana: Top 3 LSTs hold 80% combined (JitoSOL at 46%, mSOL at 23.5%, bSOL at 11.2%).
👉 Discover how Solana’s DeFi innovations compare
3. Evolution of Solana’s LST Market
Early leaders (2022):
- mSOL (60%) (Marinade)
- stSOL (33%) (Lido)
- scnSOL (7%) (Sanctum)
Post-FTX collapse, liquid staking dropped from 3.2% to 2%, reflecting low DeFi integration and muted narrative focus.
4. Current LST Leaders
- JitoSOL (46%): Overtook competitors within a year via strategic partnerships.
- mSOL (23.5%)
- bSOL (11.2%)
- INF (8.2%)
- jupSOL (3.6%)
5. Why JitoSOL Succeeded
- Liquidity: Deep pools across DEXs.
- DeFi Alliances: Integrations with top protocols.
- Multi-Chain Vision: Future-proof scalability.
6. Solana’s Untapped Potential: $1.5B–$17B TVL Growth
LSTs could unlock:
- 10% adoption: +$1.5B liquidity.
- 15% adoption: +$5B (bull case).
- 30% adoption: +$13.5B (long-term parity with Ethereum).
👉 Explore Solana’s DeFi growth catalysts
7. Collaborative Ecosystem Growth
Projects like Drift Protocol, Jupiter, and Sanctum are driving LST adoption, fostering DeFi innovation.
FAQs
Q1: Why is Solana’s liquid staking rate lower than Ethereum’s?
A: Solana’s native delegation feature reduces reliance on third-party LSTs, unlike Ethereum’s early dependency on Lido.
Q2: What makes JitoSOL the dominant LST?
A: Liquidity depth, DeFi integrations, and a multi-chain roadmap propelled its rise.
Q3: How might LSTs boost Solana’s TVL?
A: By converting staked SOL into yield-generating collateral, LSTs could inject billions into DeFi lending/borrowing markets.
Q4: Which protocols are advancing Solana’s LST space?
A: Sanctum, Marginifi, and Helius Labs are key players expanding use cases.