290,000 ETH Added to Liquid Staking Protocols Ahead of Spot ETF Launch

According to data, liquid staking protocols accumulated an additional 290,000 ether in the past 46 days. This increase raised the proportion of ETH in liquid staking protocols by 0.24%, bringing the total to 11.18% of Ethereum’s 120.2 million circulating supply.

Shift in Liquid Staking: Swell Drops, Frax Ether Moves Up

At the time of writing, 13.44 million ether is locked into liquid staking protocols, with Lido holding 72.3% of that amount. On May 29, Lido had 9.51 million ETH, which has increased to 9.71 million today. This indicates that over the past 46 days, Lido absorbed 200,000 of the 290,000 ETH inflows, according to defillama.com metrics.

TVL in liquid staking derivatives as of July 14, 2024.

During the same period, Rocket Pool, the second-largest liquid staking protocol, experienced an inflow of 20,000 ETH, raising its total from 1.15 million to 1.17 million ether. Binance’s staked ETH increased by 13,257 ETH since May 29, while Mantle’s protocol saw a deposit of 23,027 ETH during the same timeframe.

Frax Ether is the fifth largest liquid staking protocol for ETH and it holds 197,079. This used to be Swell’s position but the protocols saw a decline from 181,863 ETH to the current 167,241. Swell has been relegated down to the eighth spot in terms of the largest liquid staking platforms.

As the launch of spot ether exchange-traded funds (ETFs) approaches, the landscape for liquid staking protocols could be poised for potential shifts. The forthcoming changes in market dynamics very well could influence the distribution and growth patterns observed in these protocols. In addition to liquid staking, staking, in general, consumes 27% of the circulating ETH supply.

What do you think about the ether deposits liquid staking protocols have seen since May 29? Share your thoughts and opinions about this subject in the comments section below.

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