DeFi Liquid Staking Surges in Q3 2022
Author: Dorothy ReyesConversely, the liquid staking category is relatively new to the DeFi sector but has grown rapidly since its introduction in Q3 2022. Proof-of-stake (PoS) technology was introduced to the Ethereum network in that quarter and allowed users to stake their ETH tokens and earn rewards in the form of liquidity pool tokens, which can be traded or used for other purposes. Consequently, the liquid staking category saw a 6.3% market share in the same quarter.
The overwhelming performance of liquid staking compared to lending could signal a change in investor behaviour, as investors are now more likely to stake their tokens to receive rewards instead of lending them to receive interest. This phenomenon indicates a shift in the wider DeFi ecosystem, where investors look for innovative ways to earn rewards.