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State of Solana Staking: Coinbase Prime Integrates mSOL, Jupiter Launches JupSOL, and Liquid Staking Gains Momentum

Liquid staking adoption on Solana accelerates, offering a glimpse into the future of staking and its growing role within Solana's DeFi landscape.

April 19, 2024 by Sheldon

Staking continues to be a driving force in the Solana ecosystem, with both traditional and liquid staking gaining momentum. Coinbase Prime's integration of Marinade's mSOL token is a major step forward for institutional investors, bringing the benefits of liquid staking to an even wider audience. 

Coinbase Prime Recognizes Potential in Solana Staking

Coinbase Prime's integration of Marinade's mSOL token signifies a growing acceptance of Solana within the traditional financial sector and broadens institutional investors' access to liquid staking. This move comes on the heels of Coinbase Wallet's recent addition of Solana trading functionality, solidifying Coinbase's shift toward a more blockchain-agnostic stance. Now, institutional investors can leverage Coinbase Prime's industry-leading cold storage solutions to securely participate in Solana staking and earn competitive rewards from the protocol. Marinade Finance, a leading force in Solana staking that boasts the leading position in Solana DeFi with a TVL of over $1.3 billion, automates the staking process by monitoring all Solana validators and delegating to a single pool of the 100+ best-performing ones, simplifying staking and optimizing returns for investors.

Solana's Unique Staking Advantages

Compared to other blockchains, Solana offers a staking experience designed for ease of use and accessibility:

Lower Barrier to Entry: Unlike some Proof-of-Stake platforms that require a minimum amount of tokens to participate in staking, Solana has no such requirement. This opens up participation to a wider range of users.

Flexible Staking Options: Solana's stake accounts provide users with granular control over their staked assets. They can delegate their stake to validators and even leverage services like Marinade Native for automated, secure staking without relying on smart contracts.

Faster Unbonding: With an unbonding period of just one epoch (around 2-3 days), Solana offers greater liquidity compared to several other staking platforms where users may have to wait for weeks to access their staked tokens. Users can also easily unstake mSOL instantly on Marinade's dAPP.

Liquid Staking on Solana Gains Traction

The launch of JupSOL, a new liquid staking token from Jupiter, a leading Solana-based decentralized exchange, further highlights the surge in demand for liquid staking options. Jupiter is collaborating with Sanctum, a key player in Solana's LST development, to drive the adoption of liquid staking across the Solana DeFi ecosystem.  The opportunity is vast, as currently, only 5% of staked SOL on Solana is utilized in liquid staking, leaving a tremendous runway for growth and innovation.

The Future of Solana Staking

The growing accessibility, flexibility, and the rise of liquid staking solutions paint a bright future for Solana staking. With more projects introducing liquid staking tokens, we can expect increased DeFi adoption within the Solana ecosystem; the opportunity is vast, as currently, only 5% of staked SOL on Solana is utilized in liquid staking, leaving a tremendous runway for growth and innovation. The adoption of LSTs can help unlock the portion of 95% of natively staked SOL, which can turbocharge Solana DeFi and help Solana be more efficient in terms of liquidity and volume.

Sponsored by Marinade Finance

About Marinade Finance:

Marinade Finance is a leading Solana staking platform that simplifies staking and unlocks DeFi opportunities for users. It automatically delegates SOL to a diversified pool of the top validating nodes on the Solana network, maximizing returns and minimizing risks. By aggregating all Solana validators, Marinade is able to spread stake across the network and capture the best possible returns for its users.

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