Binance’s BNSOL is quietly capturing Solana’s liquid staking market, reaching second place in dominance simply six months after launch
Binance is quietly gaining dominance in Solana’s (SOL) liquid staking market. Based on Dune analytics, after simply six months of launch, Binance’s BNSOL reached a market share of 21.4%. This places the BNSOL whole worth locked at 8.4 million in staked SOL, or $901 million. By this measure, BNSOL is second solely to Jito, which controls 42.7% of the market.
A probable driver of this fast development is BNSOL’s deep integration with the Binance ecosystem and varied DeFi protocols. The token is accessible via Binance’s centralized change and pockets, permitting customers to earn staking rewards whereas sustaining liquidity. Merchants can use BNSOL for buying and selling, lending, and collateralization with out un-staking their SOL holdings.
Solana’s liquid staking ratio rises to 12.8%
The expansion of liquid staking recognition on Solana additionally performed a task, a determine that has been persistently on the rise. Based on Blockworks, the liquid staking ratio on Solana rose to 12.8%, doubling from the 12 months prior. Blockworks offers barely totally different figures on liquid staking dominance, placing BNSOL at 18% and JitoSOL at 38%, whereas Marinade’s mSOL holds a 16.8% share.
On the similar time, the staking ratio on Solana remained 62%, which signifies investor confidence within the undertaking. Notably, in contrast to liquid staked tokens, staked Solana tokens solely give out rewards if customers lock them up for a given interval. This successfully locks the SOL tokens out of the circulating provide, creating constructive stress on the value.
Nonetheless, each liquid staking TVLs and Solana’s worth have declined sharply from their January highs. BNSOL’s TVL, as an example, has dropped from a peak of $2 billion on January 20. The decline is essentially on account of Solana’s broader worth retracement, which noticed SOL fall 63% from its January all-time excessive of $294.33.
