Research Summary
The report discusses the dynamics of liquid staking in Ethereum and Solana, highlighting the dominance of top liquid staking protocols like Lido and Marinade, each with a ~75% market share. It further delves into the potential of Marinade Finance, Solana’s leading liquid staking protocol. Despite its market leadership, only 2.15% of SOL is liquid staked compared to 42.67% for ETH. The report attributes this to factors like ETH starting as a PoW network and original SOL investors being risk-averse. Marinade has launched several upgrades to increase the adoption of its LST, mSOL, including a new incentive program and a redesigned tokenomics model.
Actionable Insights
- Consider the potential of Marinade Finance: Despite only 2.15% of SOL being liquid staked, Marinade Finance holds a 75% market share in Solana’s liquid staking protocol. This indicates a significant potential for growth.
- Keep an eye on Marinade’s upgrades: Marinade has launched several upgrades to increase the adoption of its LST, mSOL. These include a new incentive program, Open Doors, and a redesigned tokenomics model.
- Understand the dynamics of liquid staking: The report provides a comparison between Ethereum and Solana’s liquid staking dynamics, which could be useful for understanding the market and making informed decisions.
