As of April 28th, liquid staking has become the leading sub-sector in decentralized finance (DeFi), surpassing decentralized exchanges (DEXes) in total value locked (TVL).
Liquid staking explodes
Liquid staking has experienced impressive growth, increasing by over 131% since the start of the year. According to Binance Research, the difference in TVL between liquid staking and DEXes is $6.8 million.
Additionally, liquid staking has become the most popular method for staking Ethereum (ETH), accounting for 37.1% of the total ETH staking market.
Liquid staking is a new way to earn rewards from staking tokens without having to lock them up for a period of time.
By using a liquid staking token (LST), users can still have access to their tokens while earning yields. This has led to significant growth in the DeFi sector, particularly with the rise of DEXes and the increasing popularity of liquid staking.
As of June 30th, the TVL sub-sector has the largest market share among DeFi categories at 24%, surpassing DEXes at 17.9%.
Lending and bridge follow DEXes at 16.6% and 13%, respectively. Liquid staking has seen a remarkable gain in market share of 74%, dominating the overall DeFi landscape.
This surge has caused a decline in market share for DEXes from 23.2% to 17.9%, as well as other sectors such as CDP, yield, and minor DeFi categories.
New crypto bill is on its way
Bloomberg reports that Representative Glenn Thompson, a Republican from Pennsylvania, is preparing to introduce a new cryptocurrency-related bill following the recent verdict in the SEC’s Ripple lawsuit.
Thompson is hopeful that his proposed crypto legislation will receive backing, given the recent court ruling that XRP sales on the open market did not violate securities laws.
This decision contradicts the SEC’s assertion that most tokens offered to retail investors are unregistered securities. A US District Judge made this ruling.
Stay tuned for more news about the issue.
