Since the beginning of this year, the total volume of funds (TVL) blocked in Solana’s liquid staking protocols has seen a 91% spike – from $98 million to $187 million.
This surge has been attributed to the growth in popularity of derivative staking instruments driven primarily from the ShapeShift hard fork in the Ethereum network.
Furthermore, the steady rise of SOL’s price by 96% in six months (from $9.9 to $19.4) on CoinGecko has played a pivotal role in the increased demand for LSD in the Solana network.
Defi Llama further reported that Marinade Finance, Lido Finance, Jito, JPool, and Socea cumulatively account for 69% of the total blockchain TVL, equating to a total of $273 million.
Among these, Marinade Finance is at the forefront with 62% of the stake in the network, followed by Lido Finance (27%) and Jito (7%). All in all, 1.66 million SOL (~$31 million) were blocked in liquid staking derivatives as of February 2023.