Exchange LSTs Attract Over $112.2M in TVL Since Launch

Centralized exchanges are making their presence in Solana’s Liquid Staking landscape known, with Binance and ByBit leading the charge.

Finn Miller

Published: Oct 1, 2024 at 17:21
Edited: Oct 1, 2024 at 17:21

Liquid Staking Tokens (LSTs) have enjoyed a sensational year in Solana DeFi. Protocols like Sanctum have streamlined LST adoption and education, making these essential DeFi assets far more accessible within the ecosystem.

Unsurprisingly, Solana’s surging LST ecosystem attracted the attention of large-scale centralized players. Leading exchanges like Binance and ByBit have since entered the arena, leveraging Sanctum-powered LSTs to offer users greater flexibility and capital efficiency.

How have these centralized players fared since joining what is predominantly a decentralized space?

$BNSOL, $bbSOL Climb LST Ranks

Since entering the market in September 2024, Binance’s $BNSOL and ByBit’s $bbSOL have rapidly climbed the ranks to become two of Solana’s largest LSTs.

Based on Sanctum data, $BNSOL boasts a circulating supply of 404,529, making it the 6th largest LST in the ecosystem behind $jitoSOL, $mSOL, $jupSOL, $bSOL, and MarginFi’s $LST.

BNSOL

To support the rollout of $BNSOL, Binance is offering depositors the chance to win one of 20 Solana Seeker mobile phones, as well as their share of over $100,000 in SOL.

Meanwhile, $bbSOL has also managed to attract its fair share of stake, attracting over 329,647 staked SOL. This places $bbSOL in the 8th position, falling just behind Helius’ $hSOL.

While Binance has undoubtedly leveraged its enormous user base and sizable validator to rise through the ranks, ByBit has opted for an aggressive user acquisition technique. In a bid to attract more stake from users, ByBit has briefly boosted $bbSOL yield.

The centralized exchange is offering users over double the yield provided by its rivals, supercharging $bbSOL APY to around 20%. Collectively, $BNSOL and $bbSOL have accrued over $112M in TVL (Total Value Locked).

$bbSOL Supply Up 769% Since Launch

Adoption rates show that Solana stakers and DeFi participants are reacting positively to centralized exchanges joining the LST landscape. Based on Step Finance data, $bbSOL supply has surged from 36,982 to 321,711, rising by approximately 769% since launching on September 5.

bbsol supply

However, $bbSOL impressive adoption could be attributed to its boosted reward campaign. When $bbSOL yield returns to more conservative figures at the end of the promotional period, holders may rotate their stake back to alternative providers.

Meanwhile $BNSOL has also enjoyed a significant supply increase. Since launching on September 12, $BNSOL supply has risen 304%, running from 100,000 to 404,528.

Who’s Next?

The successful launch of both $BNSOL and $bbSOL heralds the beginning of greater involvement between centralized exchanges and decentralized ecosystems. After witnessing the growth of these assets, more centralized exchanges will likely look to deploy their own native LSTs in the future.

Currently, BitGet appears to be next in line to join Solana’s flourishing LST ecosystem. The centralized exchange previously teased the $BGSOL back in August, suggesting that BitGet would not be far behind its rivals.