What’s Behind the Surge in Staked SOL?

• Engagement Surge: Jito’s protocol propels liquid staking on Solana with 1.9 million $SOL staked.
• Untapped Potential: Solana’s liquid staking remains expansive, showcasing vast DeFi capabilities.

In a recent development within the blockchain sphere, Solana’s ($SOL) liquid staking scenario is experiencing a significant uptick, propelled by the emerging liquid staking protocol Jito. As per a tweet update by Emperor Osmo, Jito’s staking deposits have been rocketing, signifying a robust growth in Solana’s staking landscape.

$SOL staking is looking beautiful.@jito_sol ‘s staking deposits are going parabolic.

– 1.9m $SOL staked
– Weekly staking growing
– Depositors outpacing withdrawers significantly.

This will go even higher with Jito points airdrop to stakers. pic.twitter.com/8mpN5L9gmb

— Emperor Osmo (@Flowslikeosmo) September 20, 2023

The specifics from Osmo illustrate a progressive narrative: 1.9 million $SOL staked, escalating weekly staking, and depositors markedly overshadowing withdrawers. Furthermore, the surge is poised to climb with a forthcoming Jito points airdrop to stakers, fostering a deeper engagement within the staking community.

The JitoSOL Staking Pool: A Catalyst for Growth

The essence of liquid staking is the empowerment it bestows upon users, facilitating direct staking participation while concurrently allowing the staked assets to be utilized across the decentralized finance (DeFi) domain for additional yield prospects. JitoSOL is catalyzing this space by enabling a staking pool where users can stake their Solana tokens in return for a liquid staking token known as JitoSOL. Like its counterparts, this token appreciates in value through staking rewards over time, thus serving as an attractive proposition for stakeholders. MEV (Miner Extractable Value) powered staking rewards on Solana further accentuate the appeal, rendering a fresh dynamism to Solana’s staking ecosystem, as cited from JitoSOL’s (Staking and MEV) MEV Powered Staking Rewards on Solana.

Solana’s Staking Landscape: A Closer Look

The vibrancy in Solana’s staking numbers is palpable. Data from The Staking Explorer reveals a staking market cap of $7.77 billion with an annualized average reward rate of 6.97% at the time of publication. While the staking momentum has robustly accelerated over recent months, it’s observed that staking yields have tapered. This is attributed to the core proof-of-stake (PoS) doctrine, whereby an augmentation in staker numbers dilutes the yield distribution. Despite facing bearish market sentiments with $SOL trading at $19.58, down by 2.6% over the last 24 hours at the time of publication, the unfolding narrative of Solana’s liquid staking surge emboldens its standing in the blockchain domain.

This factual exegesis sans a summary or conclusion lays down the burgeoning milieu of Solana’s liquid staking, engendered significantly by Jito’s innovative protocol, thus enriching the discourse surrounding Solana’s DeFi potential.

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