Ethereum liquid stake platforms are making waves in the decentralized finance (DeFi) ecosystem. Recent on-chain reports have revealed that liquid staking protocols have reached a new milestone in the amount of Ether (ETH) staked, reaching a staggering 12 million ETH mark in just a few days.
Ethereum Liquid Staking is gaining momentum
As Ethereum 2.0 flourishes, liquid strike protocols in the DeFi ecosystem have grown rapidly despite that recent market volatility.
Research data from DeFi TVL aggregator Defillama revealed the massive growth of Ethereum holdings in liquid staking platforms on Monday, September 25. According to the data, ETH is in liquid strike protocols has risen to about 12.31 million and may continue to rise.
Reports indicated that as much as 370,000 ETH had been staked in just five days, allowing liquid staking protocols to reach their current 12 million mark. Liquid staking platforms such as LidoRocket Pool, Coinbase, and Binance are among the list of prominent protocols that have led to the recent surge in Ether staking.
According to Defillama TVL rankings, Lido ranks first in terms of the amount of Ethereum staked, with a TVL of $13.997 billion in liquid stakes. The protocol secured more than 8 million Ether on September 20, and another 30,000 after that.
Lido Finance dominates ETH liquid staking | Source: DeFiLlama
Coin base currently ranks second in Defillama’s TVL rankings, with approximately $2.155 billion in hand, a significant difference from Lido’s TVL.
Coinbase currently has approximately 1.3 million Ether in reserve. While Rocket Pool holds the third position in the TVL rankings and has increased its Ether holdings from 940,496 to 945,402.
The Binance Liquid Staking platform is taking the lead
The Binance liquid staking platform is the driving force behind the recent spike in ether inflows into liquid staking protocols in the DeFi ecosystem.
According to reports, Binance has added a surprising amount of ether to its already significant ether reserves. The liquid staking platform that previously included 445,000 ETH in its reserve added 318,605 ETH and now owns 764,105 ETH. Research data has shown that Binance has accumulated a significant amount of ETH tokens to support its staking token, Wrapped Beacon ETH (WBETH).
In the past three months, the DeFi ecosystem recorded a valuation of liquid stakes more than $20 billion evaluating different protocols in the DeFi ecosystem. Following this, Defillama’s September data showed that liquid staking protocols now hold $20.5 billion in assets, up a whopping 293% from previous lows in June 2022.
Although the main protocols driving the wave are Lido, Binance and Rocket Pool. Other upcoming liquid strike protocols such as Davos And InQubeta are here to stay, driven by the Ethereum 2.0 upgrade and investors looking to maximize their income through Ethereum stakes.
ETH price at $1,587 as liquid staking surges | Source: ETHUSD on Tradingview.com
Featured image from iStock, chart from Tradingview.com