Liquid staking solutions like Lido and Rocket Pool now hold more total value locked (TVL) than decentralized exchanges (DEXs), making them the top category of DeFi protocols, according to crypto analytics platform DefiLlama. TVL is a measure of the dollar value of all cryptocurrencies locked in the protocol's smart contracts.
The Liquid staking protocol has only recently climbed to the top of the list. According to archived information, on April 13, only $17.19 billion of cryptocurrencies were locked in liquid staking contracts, while the value of decentralized exchanges was $18.89 bill ion. However, DEXs fell by $1.66 billion to $17.2 billion, while liquid staking solutions rose by $280 million to $17.47 billion, taking the top spot. The Liquid staking protocol is a staking pool for staking cryptocurrencies on behalf of users. These protocols also issue tokens to users, representing cryptocurrencies deposited by that person. Because these tokens can be used in DeFi applications, Liquidity Staking Protocol allows users to simultaneously stake their tokens and use them in other applications.
Lido (stETH) remains the largest staking protocol with $11.54 billion in cryptocurrencies locked in its contracts, according to May 1 data from DefiLlama. Coinbase Wrapped Staked Ether (CBETH) is second with $2.19 billion and Rocket Pool (rETH) is third with $ 1.46 billion . The remaining agreements each have a TVL of less than $1 billion, but add up to a total of $2.22 billion. Lido is the first liquid staking protocol, launched in 2020. Liquidity staking has become increasingly popular as Ethereum moved to proof-of- stake and allowed withdrawals.
