Data from DefiLlama, a crypto analytics platform, reveals that liquid-staking solutions such as Lido and Rocket Pool have surpassed decentralized exchanges (DEXs) in total value locked (TVL), making them the top category of DeFi protocols. The TVL measures the dollar value of all cryptocurrencies locked in a protocol’s smart contracts.
Liquid-stacking protocols enable users to stake their crypto by stacking pools and receiving tokens representing their deposits, which can be used in DeFi apps. On April 13, DEXs held more TVL than liquid-staking contracts. However, DEXs have experienced a decline in TVL while liquid staking solutions have seen an increase, putting them in the top spot.
As of May 1, Lido holds the most TVL with $11.54 billion locked, followed by Coinbase Wrapped Staked Ether and Rocket Pool. Liquid staking has grown in popularity with the move toward proof-of-stake on Ethereum, allowing for withdrawals. Lido was the first liquid staking protocol and was launched in 2020. The remaining liquid staking protocols each have less than $1 billion of TVL but collectively add up to $2.22 billion.