Solana's Liquid Staking Landscape in 2025: A Complete Overview

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The rise of liquid staking has transformed blockchain ecosystems by enabling users to earn staking rewards while maintaining capital efficiency. While Ethereum pioneered this trend with protocols like Lido dominating the space, the narrative around liquid staking is rapidly evolving on Solana—a high-performance blockchain gaining momentum in the decentralized finance (DeFi) world.

But despite Solana’s growing popularity and over 60% of SOL being staked, only a small fraction—just 6% ($3.4 billion)—is represented through liquid staking tokens (LSTs). In contrast, Ethereum sees 32% of its staked ETH come from liquid staking solutions. What’s behind this gap? And more importantly, where is Solana’s liquid staking ecosystem headed?

This article dives deep into the current state, key players, market dynamics, and future potential of liquid staking on Solana—offering a clear, data-driven picture for investors, developers, and DeFi enthusiasts.

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The Core Drivers of Liquid Staking Success

Before analyzing Solana’s unique position, it's essential to understand what makes a liquid staking protocol successful. According to on-chain data analysis and ecosystem trends, three factors stand out:

These elements have fueled Ethereum’s dominance in liquid staking. On Solana, however, adoption has followed a different trajectory—one shaped by structural differences and timing.

Why Is Solana’s LST Adoption Still Low?

One major reason for the slow uptake of LSTs on Solana lies in the existence of protocol-native delegation. Unlike Ethereum, where users historically needed third-party protocols like Lido to stake ETH efficiently, Solana allows direct delegation within its core protocol. This ease of access reduced early demand for liquid staking alternatives.

Additionally, the DeFi infrastructure around LSTs was initially underdeveloped. In 2022–2023, there were few compelling use cases for LSTs beyond basic yield generation. There was limited integration with lending platforms or derivative protocols, which dampened incentives for users to swap their staked SOL for an LST.

Even after the FTX collapse—a moment that shook confidence in centralized staking—the proportion of liquid-staked SOL dropped from 3.2% to just 2%, highlighting the fragility of early market trust.

Evolution of Solana’s LST Market Share

Despite slow beginnings, Solana’s liquid staking landscape has matured significantly. Today, the market is far more balanced compared to Ethereum’s Lido-dominated scene.

While Lido controls 68% of Ethereum’s LST market, Solana features a multi-player competitive environment. The top three LSTs now account for about 80% of the total market, but no single player holds a monopoly.

This healthy competition fosters innovation and better user outcomes—a sign of a maturing ecosystem.

Key Players in Solana’s Liquid Staking Ecosystem

Let’s break down the major LST providers shaping Solana’s DeFi future:

1. jitoSOL – The Market Leader

Launched in November 2022 by Jito Labs, jitoSOL has emerged as the dominant force in Solana’s LST space. It took roughly one year to surpass both stSOL (Lido’s offering) and mSOL (Marinade Finance), now commanding 46% market share.

Jito’s success stems from its focus on MEV (Maximal Extractable Value) capture. By redistributing MEV rewards back to stakers, jitoSOL offers higher yields than traditional staking—making it highly attractive to yield-seeking users.

👉 Explore how MEV-enhanced staking models are redefining returns in modern DeFi.

2. mSOL – The Early Innovator

Marinade Finance’s mSOL once held a commanding lead, capturing around 60% of early market attention. Though now second with 23.5% share, mSOL remains a critical player due to its deep integrations across Solana DeFi apps.

It was one of the first LSTs supported on platforms like Aldrin, Saber, and Step Finance, helping establish foundational liquidity.

3. bSOL – Backed by Validator Strength

Backed by the popular wallet Backpack, bSOL has quickly risen to third place with 11.2% market share. Its validator-centric model appeals to users who trust Backpack’s infrastructure and security track record.

4. INF and jupSOL – New Entrants with Strong Backing

These newer entrants signal growing institutional interest and broader ecosystem support for liquid staking.

The Future Potential of Liquid Staking on Solana

Liquid staking remains one of the most underutilized yet powerful tools in Solana’s DeFi toolkit. Currently, most staked SOL sits idle—earning rewards but not participating in DeFi activities like lending, borrowing, or leveraged yield farming.

By unlocking this dormant capital, LSTs could dramatically boost Solana’s Total Value Locked (TVL).

Here’s a projection based on current valuations and adoption curves:

To put this in perspective: if just 30% of staked SOL became active in DeFi via LSTs, it could elevate Solana’s TVL from current levels to $15–17 billion, rivaling top-tier ecosystems.

Innovation Across the Stack: Who’s Building?

The good news is that many leading DeFi teams are actively working to integrate more LSTs into their platforms:

This collaborative momentum suggests that the next phase of Solana’s growth will be driven not just by new users, but by capital efficiency innovations powered by liquid staking.

👉 See how leading DeFi protocols are integrating liquid staking to maximize user yields.

Frequently Asked Questions (FAQ)

Q: What is a Liquid Staking Token (LST)?
A: An LST represents proof of staked assets and allows holders to earn staking rewards while using the token in DeFi applications like lending or trading.

Q: How does jitoSOL generate higher yields than regular staking?
A: jitoSOL captures MEV (Maximal Extractable Value) from transaction ordering and redistributes those profits to stakers, boosting overall returns.

Q: Can I use multiple LSTs across different DeFi platforms?
A: Yes—protocols like Marginfi and Raydium support various LSTs including mSOL, jitoSOL, and bSOL, giving users flexibility in strategy.

Q: Is liquid staking on Solana safe?
A: Security depends on the protocol. Well-audited projects with transparent validator sets (like Jito and Marinade) are generally considered low-risk.

Q: Will LSTs become interoperable across chains?
A: Multi-chain bridges for LSTs are already in development. Expect cross-chain wrappers for jitoSOL and mSOL to emerge in 2025.

Q: How can I start using LSTs on Solana?
A: You can stake SOL via platforms like Jito or Marinade to receive jitoSOL or mSOL, then deposit them into DeFi apps such as Kamino or Tulip for yield optimization.

Core Keywords:

With strong fundamentals, rising innovation, and increasing demand for capital-efficient solutions, Solana’s liquid staking ecosystem is poised for exponential growth—making it a space worth watching closely in 2025 and beyond.