BNSOL climbs to No. 2 in Solana liquid staking with $901m TVL

Binance’s BNSOL is quietly capturing Solana’s liquid staking market, reaching second place in dominance just six months after launch

Binance is quietly gaining dominance in Solana’s (SOL) liquid staking market. According to Dune analytics, after just six months of launch, Binance’s BNSOL reached a market share of 21.4%. This puts the BNSOL total value locked at 8.4 million in staked SOL, or $901 million. By this measure, BNSOL is second only to Jito, which controls 42.7% of the market.

A likely driver of this rapid growth is BNSOL’s deep integration with the Binance ecosystem and various DeFi protocols. The token is accessible through Binance’s centralized exchange and wallet, allowing users to earn staking rewards while maintaining liquidity. Traders can use BNSOL for trading, lending, and collateralization without un-staking their SOL holdings.

Solana’s liquid staking ratio rises to 12.8%

The growth of liquid staking popularity on Solana also played a role, a figure that has been consistently on the rise. According to Blockworks, the liquid staking ratio on Solana rose to 12.8%, doubling from the year prior. Blockworks gives slightly different figures on liquid staking dominance, putting BNSOL at 18% and JitoSOL at 38%, while Marinade’s mSOL holds a 16.8% share.

At the same time, the staking ratio on Solana remained 62%, which indicates investor confidence in the project. Notably, unlike liquid staked tokens, staked Solana tokens only give out rewards if users lock them up for a given period. This effectively locks the SOL tokens out of the circulating supply, creating positive pressure on the price.

Still, both liquid staking TVLs and Solana’s price have declined sharply from their January highs. BNSOL’s TVL, for instance, has dropped from a peak of $2 billion on January 20. The decline is largely due to Solana’s broader price retracement, which saw SOL fall 63% from its January all-time high of $294.33.