Ethereum liquid staking is a mechanism that allows crypto holders to earn rewards for supporting the network while keeping the ability to move their assets. Unlike traditional staking, where tokens are locked for long periods, here users receive special substitute tokens and can use them in other applications. Over the past few months, this tool has become one of the most notable trends in the Ethereum ecosystem.

Growth of volumes in the sector

Over the past 14 weeks, the amount of ETH locked in liquid staking protocols has grown from 13.62 million ETH to 14.31 million ETH, equivalent to about $3.2 billion. For the market, this is a serious figure: in just three months the increase exceeded 690,000 ETH — roughly the same as the total reserves of some layer-two protocols. This dynamic shows that users continue to trust the model even while interest in other segments of the crypto market is cooling.

The demand for liquid staking can be explained by a mix of two factors. On the one hand, it offers rewards for helping secure the Ethereum network. On the other, it preserves liquidity: users receive substitute tokens (for example, stETH) that can be used in other DeFi services. In simple terms, it combines “income and flexibility at the same time” — a rare mix that attracts both retail investors and funds.

It is also important that this growth comes amid overall market volatility, when crypto prices are swinging and interest in risky assets is declining. Despite this, many see liquid staking as a relatively reliable way to earn passive income. It can be compared to a bank deposit, but in a decentralized form: the assets keep working for the user without being permanently locked.

Major players of the market

Even though new solutions continue to appear, the sector is still concentrated around a few leaders. The main one remains Lido, which controls over 61% of the market. Its share accounts for 8.76 million ETH, or about $41.59 billion. In second place is Binance Staked ETH with 3.3 million ETH.

To better illustrate the current distribution, here are the leading projects:

• Lido — 8.76 million ETH ($41.59 billion), market share 61.22%.
• Binance Staked ETH — 3.3 million ETH ($15.67 billion).
• Rocket Pool — 652,585 ETH ($3.09 billion).
• Liquid Collective — 365,918 ETH ($1.74 billion).
• Coinbase Wrapped Staked ETH — 143,321 ETH ($683 million), over 9% growth in one week.

Other protocols are also active but remain in the shadow of the leaders. Still, there are projects with notable dynamics, such as mETH Protocol, which saw a 19% drop in the last 30 days. This concentration of the market around a handful of big players shows that they set the rules, while smaller platforms are forced to adapt to their standards.

Role of smaller participants

Alongside the giants, there are smaller players who nonetheless contribute to diversification and offer unique products. Their combined share is modest but gradually increasing, especially within niche communities.

Among the notable representatives are:

• Frax Ether — 93,928 ETH ($446 million).
• Origin Ether — 38,143 ETH ($181 million).
• Crypto.com Liquid Staking — 36,043 ETH ($172 million).
• Stakestone STONE — 29,962 ETH ($142 million).

These projects create a competitive environment and attract users with new incentives — for example, better conditions or integration with other DeFi services. Despite their smaller scale, this is often the segment where experiments appear first, later to be adopted by major players.

Overall picture and outlook

As of August 2025, the share of Ethereum in liquid staking reached 11.86% of the total circulating supply of 120.7 million ETH. This is a significant indicator that confirms growing user confidence in the tool. More and more investors are treating liquid staking not as an optional add-on but as part of their long-term capital management strategy.

The increase in volumes and the dominance of big players like Lido and Binance highlight the strategic importance of the sector. At the same time, there remains a steady interest in smaller protocols offering alternative approaches and more flexible conditions. This combination fosters healthy competition and drives the development of the ecosystem as a whole. Considering the progress of Ethereum 2.0 and the gradual integration of blockchain solutions with traditional finance, it is expected that liquid staking will establish itself as a core element of the digital economy.