• Solana’s Liquid Staking Tokens show significant growth, led by dominant players in the market.  
• Liquid staking adoption remains limited, highlighting untapped potential in decentralized finance.  
• Increased demand and activity spikes reflect growing interest in liquid staking solutions.

Solana Liquid Staking Tokens (LSTs) have experienced a surge in market capitalization, reaching $8 billion in 2024. This marks substantial growth in the sector over the past two years.

Despite Solana’s 60% staking ratio, only 6% of staked tokens are from liquid staking solutions. This leaves significant capital unused for decentralized finance (DeFi) applications. Dominant players in the space, such as JitoSOL, mSOL, and jupSOL, have fueled this expansion. JitoSOL alone holds 41.5% of the market share.

Liquid Staking Growth: Exponential Rise

The Solana LST market has grown significantly since December 2022. Starting from small levels in early 2023, the total market cap reached $8 billion by late 2024. This growth is due to the increasing adoption of liquid staking solutions, which allow users to maintain liquidity while earning staking rewards.

The market saw a notable rise in mid-2024, signaling heightened interest from institutional and retail investors. This is likely driven by Solana’s strong and scalable blockchain infrastructure.

JitoSOL leads the pack with a large market share, followed by mSOL and jupSOL at 15.3% and 13.2%, respectively. Smaller players like jupSOL and laineSOL also contribute to this competitive market, demonstrating the diversity of Solana’s LST ecosystem.

Read also: Solana’s Liquid Staking Surges to $5.67 Billion Market Cap, JitoSOL Leads the Way

Supply Dynamics: Issuance and Redemption Activity

Weekly data on the circulating supply of Solana LSTs from December 2023 to late 2024 shows changes in issuance and redemption activity. Notable spikes in supply during April and June 2024 suggest increased staking demand and DeFi integrations.

Periods of negative supply growth reflect withdrawals or market corrections. The activity of leading tokens like JitoSOL, mSOL, and stSOL dominates the supply trends. JitoSOL showed consistent growth during mid-2024, indicating strong user preference.

Current Token Valuations

The market performance of Solana LSTs further demonstrates their growing value. JitoSOL’s native token, JTO, is priced at $3.62, with a 24-hour trading volume of $179.3 million and a market cap of $476.2 million.

Jupiter (JUP) trades at $1.30 with a trading volume of $736.8 million and a market cap of $1.76 billion. Marinade Staked SOL (mSOL) is valued at $290.75, with a market cap of $1.24 billion, despite a slight weekly decline of 1.55%.