In a year marked by strides in the Web3 realm, the liquid betting market has surged, emerging as a pivotal subset of the DeFi landscape. Data from Token Terminal highlights the role of liquid staking protocols in this growth, offering consistent fees that rival the best in the industry. At the forefront of the liquid betting market is Lido Finance, asserting an impressive 74% market share.
Lido’s ascendancy owes much to its strategic maneuvers and the successful execution of Ethereum’s Shapella hard fork. This crucial development facilitated ETH holders to withdraw their assets, a move that contributed significantly to Lido’s market share growth. The company’s dominance has expanded over time, showcasing resilience against new contenders and ETH withdrawals.
Amid this dynamic landscape, the total value of assets staked via liquid staking protocols has skyrocketed from $7.9 billion to a staggering $18.8 billion. This twofold increase underscores the escalating interest in liquid betting protocols. These protocols enable users to engage in staking while retaining the flexibility to explore higher yielding opportunities within the DeFi ecosystem.
Liquid staking protocols stand out due to their dependable fee streams, setting them apart from the fluctuating fees found on other trading platforms and decentralized exchanges (DEXs). This stability has bolstered their appeal within the industry.
New players entering the sector have further invigorated its growth. Both Liquid Collective and Swell introduced their Liquid Stake (LSt) tokens earlier this year, garnering a combined staked asset total exceeding $100 million. The cumulative market capitalization of all LSTs has now surged to $16.3 billion, marking a 16% growth in just two months.
The triumph of Lido Finance and the surge in staked assets via liquid staking protocols underscore a promising trajectory for this thriving subset. Even crypto betting and casino platforms are embracing liquidity staking, introducing their own rewarding staking programs. For instance, Fairspin’s TFS Token initiated liquidity staking, enabling token holders to reap rewards in July.