Binance’s BNSOL is discreetly seizing a significant share of Solana’s liquid staking arena, achieving the second spot in market dominance merely six months post-launch.
Binance is steadily asserting itself in the liquid staking market of Solana (SOL). As per Dune analytics, within just half a year of its introduction, Binance’s BNSOL has secured a market share of 21.4%. This equates to a total value locked of 8.4 million in staked SOL, amounting to approximately $901 million. In this metric, BNSOL trails only behind Jito, which commands 42.7% of the market.
A key factor behind this swift expansion is BNSOL’s thorough integration within the Binance ecosystem and various DeFi platforms. The token can be accessed through Binance’s centralized exchange and wallet, permitting users to earn staking rewards while retaining liquidity. Traders can utilize BNSOL for trading, lending, and as collateral without the need to un-stake their SOL assets.
Solana’s liquid staking ratio climbs to 12.8%
The increasing popularity of liquid staking on Solana has also contributed to this growth, with the ratio consistently rising. Reports indicate that the liquid staking ratio on Solana has grown to 12.8%, doubling from the previous year. Alternative estimates for liquid staking dominance place BNSOL at 18% and JitoSOL at 38%, while Marinade’s mSOL captures a 16.8% share.
Meanwhile, the staking ratio on Solana is steady at 62%, highlighting investors’ trust in the project. Unlike liquid staked tokens, traditional staked Solana tokens only yield rewards if users commit them for a specified time. This condition effectively removes the SOL tokens from circulation, generating upward pressure on pricing.
Nonetheless, both the total values locked in liquid staking and Solana’s price have seen significant declines from their peaks in January. For instance, BNSOL’s total value locked has fallen from a high of $2 billion recorded on January 20. This downturn is primarily attributed to Solana’s overall price correction, which experienced a 63% drop from its all-time high of $294.33 in January.