10 million ETH inflow pushes DeFi Liquid staking valuation above $20 billion

according to on-chain statistics From DeFillama, the total value of Ethereum Liquid staking derivatives has soared in recent months, with total crypto locks closed in record numbers. There are now over 10 million ETH locked on the Liquid staking derivatives platform, bringing the total value locked (TVL) across the various protocols to close to $20 billion.

ETH Liquid Staking Derivatives

With Ethereum 2.0 staking now live, many ETH investors have turned to liquid staking derivatives such as Lido and Rocket Pool. Liquid staking has gained massive popularity as it offers an innovative way for ETH holders to earn a yield on their holdings while having access to funds to fund other activities.

The top protocols are Lido, Coinbase Wrapped, and Rocket Pool, which together have over 9 million ETH locked. Lido currently dominates the ETH liquid staking derivatives market with a market share of 74.46% with over 7.54 million ETH at stake.

Lido dominates liquid staking market | Source: DeFiLlama

Considering the current price of ETH, this total value locked (TVL) is $14.8 billion. Lido has also seen gains of 1.86% and 7.06% respectively in the last week and month.

Coinbase Wrapped Staked ETH has also seen an increase in the number of investors, gaining over 3.06% over the past week.

On the other hand, the Trench Ether protocol has experienced the biggest growth over the past month, increasing its total value by over 375%.

The total staked value of ETH 2.0 exceeds $46 billion

The total amount locked in ETH 2.0 contracts has been rising steadily since the beginning of the year. With Ethereum moving to a proof-of-stake consensus mechanism, validators will need to lock their digital assets through staking in order to participate in the consensus process and continue adding blocks to the blockchain. This has led to the rise of “liquid staking” derivatives that allow holders to stake their ETH while maintaining liquidity.

According to statistics From Glassnode, a blockchain data and intelligence platform, the cumulative amount deposited in ETH 2.0 contracts is now at an all-time high of over $45 billion.

This is over 20% of the total ETH supply that is now locked in the ETH 2.0 contract. The progress made so far points to a very promising future for Ethereum and its transition to Ethereum 2.0.

ETH maintains position above $1,960 | Source: ETHUSD on TradingView.com

Featured Image from Unsplash, Chart from Tradingview.com