TVL of liquid staking in Solana protocols increased by 91% in six months

The volume of funds blocked (TVL) in Solana’s liquid staking protocols has increased by 91% since the beginning of the year – from $98 million to $187 million, according to The Block.

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According to DeFi Llama, Marinade Finance, Lido Finance, Jito, JPool, and Socea combined account for 69% of the total blockchain TVL, which is valued at $273 million.

Marinade Finance is in the lead, occupying 62% of the segment in the network. They are followed by Lido Finance with 27% and Jito with 7%.

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According to Kevin Pan, an analyst with the publication, the influx of funds into liquid staking derivatives (LSD) in the Solana ecosystem is presumably associated with the overall growth in popularity of such instruments. In particular, this was facilitated by the Shapella hard fork in the Ethereum network.

In 2023, about 1.66 million SOL (~$31 million) were blocked in such contracts.

“In 2023, LSD as a category of digital assets has grown in large part due to the increase in staking dynamics in Ethereum. Demand for these products has also seeped into the Solana ecosystem,” Peng explained.

Another reason for the rise of TVL was the steady growth of the SOL token. According to CoinGecko, the coin has risen in price by 96% in six months, from $9.9 to $19.4.

As a reminder, Glassnode analysts reported the increased popularity of Ethereum staking on Lido Finance after the Shanghai update.

Media: in the Russian Federation proposed to ban the organization of the circulation of cryptocurrencies

The Ministry of Finance of the Russian Federation proposes to ban the organization of the circulation of cryptocurrencies with the exception of stablecoins and the sale of coins to miners. Amendments will be made to the bill regulating the mining of digital assets, the media write, citing an informed source.

According to him, we are talking about preventing the organization of services that help to make civil law transactions or operations to transfer digital currencies from one holder to another through Russian exchangers and crypto ATMs.

However, the FSB and the Investigative Committee opposed the initiative of the Ministry of Finance. In their opinion, these changes actually introduce a ban on organizing the circulation of digital currency in general, which is not confirmed by “concrete arguments”.

The FSB concluded that the definition of the organization of the circulation of digital currency should “exhaustively reveal all the features of this process.”

The UK warned that the proposed wording of the Ministry of Finance could cause confusion between “prohibition on organizing circulation” and “prohibition on circulation”, which, in turn, would lead to legal uncertainty.

In addition, the agency believes that in the future, a ban on the circulation of cryptocurrencies can increase the share of the shadow economy, provoke an increase in crime and fraud, and also destabilize economic relations.

Now in the Russian Federation, transactions for the purchase and sale, circulation and issue of cryptocurrencies are allowed. At the same time, the use of such assets as means of payment and advertising of such an opportunity is not allowed.

Recall that the bill regulating mining has been registered in the State Duma of the Russian Federation since mid-November 2022.

Any digital asset solution] needs to be compatible with the real world and must be compatible across different blockchains  And if things go wrong, you need rules to deal with those problems,” Lambert said.
The specialist stated that the blockchain can simplify cross-border payments, trade and insurance through the tokenization of assets and the programmability of transactions.

Lambert added that CBDCs won’t help solve the current trust issue, noting that they have scalability issues.

As a reminder, Mastercard announced the pilot testing of tokenized deposits using the Multi-Token Network.

In October 2022, she announced plans to become an intermediary for traditional financial institutions in launching cryptocurrency trading.