Liquid Staking Absorbs 400,000 ETH, Closing in on 14M Mark

According to the latest figures, over the past 38 days, starting from Aug. 10, 2024, the total value locked in decentralized finance (defi) protocols has slipped by $5.07 billion. Despite this decrease, ethereum continues to pour into liquid staking derivative (LSD) platforms, with 29 distinct LSDs pulling in nearly $1 billion worth of ether during this period.

$5B Slips From Defi, Yet 400,000 Ether Pours Into Liquid Staking

Data from defillama.com shows that 38 days ago, the total value locked in defi was $84.61 billion. As of Sept. 17, 2024, that figure has fallen to $79.54 billion. Yet, LSD platforms witnessed steady ethereum deposits into certain protocols. On Aug. 10, there were 13.59 million ETH held in LSDs, and today, that number has grown to 13.99 million, just shy of the 14 million ETH milestone.

Over these 38 days, 400,000 ETH—valued at $943 million using ETH exchange rates on Tuesday—has been funneled into these LSDs. As usual, Lido remains the frontrunner, holding 69.85% of the total 13.99 million ether. This, dominance, however, is slightly down from the 72.23% share it enjoyed a little over a month ago.

Another interesting shift in the LSD landscape is Rocket Pool, which was the second-largest liquid staking protocol on Aug. 10 but has since been bumped to third place. Binances Staked Ether app now claims the second spot, with its holdings jumping from 912,902 to 1.32 million ETH.

The deposit growth since Aug. 10 can be largely credited to Binance‘s LSD, as it amassed 407,098 ETH over this period. This means other LSDs experienced outflows. For instance, Frax Ether’s reserves dropped from 191,268 ETH to 184,911 ETH, and Stakestones holdings slid from 187,998 to 175,675 ETH.