According to a new report by Per bit, Solana’s rapid growth in 2024 paves the way for liquid staking to revolutionize DeFi participation, paving the way for mainstream blockchain adoption.
Solana, one of the most advanced blockchain platforms, is entering a new era of decentralized finance (DeFi) growth driven by liquid staking. A recent report from Bybit highlights the transformative potential of liquid staking on Solana, offering enhanced flexibility, liquidity, and yield opportunities, positioning Solana as a destination of choice for retail and institutional investors.
The Rise of Liquid Staking on Solana
Liquid staking improves on traditional staking by allowing SOL holders to earn staking rewards while retaining the ability to use their assets in DeFi protocols. Unlike native staking, which locks assets and restricts liquidity, Liquid Staking Tokens (LSTs) act as on-chain receipts that can be traded, staked, or used in various DeFi applications, all while earning staking rewards. Currently, Solana has over $57 billion staked, representing a staking ratio of 68%, far surpassing Ethereum’s 28%.
However, only 6.5% of Solana’s staked SOL is currently in liquid staking protocols, highlighting a significant growth opportunity. If Solana’s liquid staking ratio reaches even 10%, the market size could grow by at least 53%, adding billions to the LST market. Leading protocols like Jito, Marinade, and BlazeStake are already driving this transformation, offering unique features like higher yields, distributed validator sets, and the potential for additional rewards.
Why Solana is poised to grow
The Solana ecosystem has seen explosive growth in 2024, particularly in the memecoin and DeFi sectors. In particular, Solana has become a hub for community projects and innovative financial applications. The blockchain’s total value locked (TVL) in DeFi has more than tripled to $4.8 billion, while staking participation continues to increase.
The main factors that make Solana so attractive are:
- High stakes participation: Solana’s user-friendly native staking and short unstaking periods make it attractive to investors.
- Emerging Liquid Staking Market: As DeFi grows, so does the demand for liquidity solutions that allow users to earn yields while maintaining flexibility.
- Potential ETF Approvals: Solana’s upcoming ETFs could open the door to widespread adoption, providing easy access to traditional investors.
Supporting visuals:
- Solana vs Ethereum Staking Ratios: This chart illustrates Solana’s higher staking participation compared to Ethereum.
- Estimated LST Market Size Growth on Solana: Demonstrates the potential expansion of Solana’s liquid staking market.
- Solana TVL Growth in 2024: Highlights the rapid growth of Solana’s DeFi ecosystem this year.
A New Era of DeFi with Bybit’s Liquid Staking Solutions
Bybit is taking the lead in supporting Solana’s liquid staking market with innovative solutions designed to make DeFi more accessible. Bybit’s bbSOL token represents staked SOL and serves as a bridge between casual investors and the complex world of DeFi. With Bybit’s platform, users can participate in liquid staking, trade on DEXs, lend or borrow against their staked assets, and much more.
Looking to the future
The Bybit report concludes that the Solana liquid staking market is poised for substantial growth, driven by expanding DeFi opportunities, community support, and technological innovation. As Solana continues to mature, it is expected to challenge Ethereum and other leading blockchains by providing a robust, scalable, and user-friendly ecosystem for DeFi applications.
