Ethereum: Liquid staking, a growth lever for ETH

Liquid staking protocols represent a major innovation in the field of cryptos. They allow investors to commit their assets in staking, while maintaining the necessary liquidity to carry out transactions or other financial operations. Compared to traditional staking, this approach brings increased flexibility, opening up new opportunities and benefits for market participants.

Ethereum Liquid Staking Protocols Set to Double in Two Years

HashKey, a Hong Kong-based financial and technology services company recently released a crypto report. In particular, she deals with questions around liquid staking protocols (LSD) on Ethereum (ETH).

According to the findings of his study, ETH-linked liquid staking protocols could grow exponentially. Within two years, HashKey will see their valuation double to $1 trillion

ETH staking could then constitute between 31% to 45% of the total ETH supply. This, by the second quarter of 2025. Enough to give a boost to the value of the LSD market. For HashKey, this could ultimately impact the price of ETH.

You should know that the price of the latter is closely linked to the revenue generated by LSD protocols. These therefore serve as leverage for the growth of the crypto, in the long term. It is not the potential to realize this perspective that is lacking.

Indeed, the HashKey report reveals some interesting figures about the LSD derivatives market. Their value in 2023 would amount to more than $22 billion in total locked-in value (TVL). While the total market capitalization of all projects, LSD reached $18 billion.

This potential confirms that staking is a relevant way for crypto holders to make passive profits. This without being forced to sell their assets. Crypto users should therefore not deprive themselves of it a priori.

Henrique Centieiro, principal researcher at HashKey, sees much further. “In the future, any rational actor will have 100% of his ETH in LSD, he points out in the HashKey report he co-wrote.