November 2023: Latest Development Trends in Onstaking Cryptocurrency Staking Model

In November 2023, the cryptocurrency industry witnessed significant advancements in the onstaking staking model, reshaping how investors engage with digital assets. Onstaking, a decentralized method of staking cryptocurrencies, has gained momentum, offering enhanced liquidity and diversified investment opportunities. Recent developments highlight its growing prominence in the market.​

Surge in Liquid Staking Tokens (LSTs)

The liquid staking token (LST) market has experienced remarkable growth, reflecting the increasing interest of investors seeking liquidity and flexibility in their staking activities. In November 2024, the total market capitalization of Solana-based LSTs reached a historic high of $7.4 billion, underscoring robust demand for these digital assets. Notably, tokens like $JitoSOL, $mSOL, and $jupSOL have captured significant market shares, emphasizing the importance of strategic investment in this evolving landscape. ​DePIN Scan - The DePIN Explorer

Ethereum Staking Experiences Significant Growth

Ethereum, the leading smart contract platform, has seen a substantial increase in staking participation. The platform's fee market share rebounded from a low of 9% at the end of August to 40% by the end of September 2024. Staking rewards for Ethereum validators have surpassed twice the real yield of 10-year U.S. Treasury bonds, making it an attractive option for investors seeking stable returns. ​PANews

DeFi Sector Revival and Staking's Role

The decentralized finance (DeFi) sector has experienced a resurgence, with the total value locked (TVL) increasing by 118% to reach $185 billion by the end of 2024. This growth is largely attributed to advancements in liquid staking, restaking technologies, and the performance of lending markets. Platforms like Lido and Rocket Pool have played pivotal roles in this expansion, offering efficient staking solutions that contribute to the overall health of the DeFi ecosystem. ​PANews

Institutional Adoption and Regulatory Developments

Institutional interest in cryptocurrency staking has intensified, with entities participating in Bitcoin ETFs and exploring staking opportunities in Ethereum and other PoS networks. This trend signifies a broader acceptance of digital assets within traditional financial frameworks. Concurrently, regulatory bodies worldwide are scrutinizing stablecoins and staking mechanisms, aiming to establish clear guidelines that balance innovation with investor protection. ​PANews

Innovations in Staking Platforms

Innovative platforms have emerged, enhancing the staking experience by offering features like decentralized identity verification and flexible staking options. For instance, CroPool has introduced a decentralized staking and locking platform, allowing users to participate with minimal barriers and enjoy a seamless staking process. Such platforms are instrumental in driving user engagement and fostering a thriving staking ecosystem. ​币界网

Future Outlook

Looking ahead, the onstaking model is poised for continued growth, driven by technological innovations and increasing institutional adoption. As the DeFi sector matures, staking is expected to play a crucial role in securing networks and generating passive income for investors. However, it is essential to remain vigilant of potential risks, including market volatility and regulatory changes, to navigate the evolving landscape effectively.​

In summary, November 2023 marks a pivotal period for the onstaking staking model, with significant developments influencing the cryptocurrency market. Embracing these advancements offers investors opportunities to diversify portfolios and participate in the growth of decentralized financial systems.