Solana-based liquid staking could attract more retail investors due to increased liquidity and capital efficiency compared to regular staking.
Solana-based liquid staking has the potential to increase more than fivefold due to sustained growth in retail adoption.
Liquid staking creates more capital efficiency for investors by offering an equivalent of the initial staked token that can be deployed in other decentralized finance (DeFi) applications.
Bybit Research suggests that the enhanced capital efficiency in DeFi could lead to a more than fivefold growth in liquid staking on Solana.