TVL of Liquid Staking Protocol Swell Doubles in Just One Month

Swell, the rising star in the liquid staking sector, is now the fourth-largest liquid staking protocol, following Lido Finance, Rocket Pool, and Frax Finance.

Swell's TVL for liquid staking doubles in just one month. Image: Swell Twitter

Swell has officially surpassed 108,000 ETH (equivalent to $245 million) in total value locked (TVL), doubling its TVL from just a month ago.

TVL statistics for Swell from May 2023 to present. Source: Defi Llama

This growth spurt, starting in December, has positioned Swell as the fourth-largest liquid staking protocol in the crypto market. According to Dune data compiled by Dragonfly analyst Hildobby, the leading names ahead of Swell are Lido Finance (9 million ETH), Rocket Pool (846,000 ETH), and Frax Finance (236,000 ETH).

This milestone coincides with Swell's launch of the "Pearl" reward points system for its liquid staking product, amid high anticipation as the airdrop race heats up. The mechanism is straightforward: users lock their ETH into Swell and receive swETH, which they can utilize across other DeFi platforms without capital constraints, thereby enhancing safety and participation.

Most of this swETH is being funneled back into EigenLayer, a restaking platform that also just hit $1 billion in TVL today. Over 53,000 swETH, worth more than $120 million, have been minted since the reward points program's inception.

EigenLayer allows users to reclaim ETH from various liquid staking tokens, recently adding six new LST pools, including swETH (Swell), sETH (Stakewise), xETH (Stader), oETH (Origin), ankrETH (Ankr), and wBETH (Wrapped Beacon Ether). Among these, Swell has been particularly popular with users.

The rapid increase in Swell’s TVL underscores the significant role of the liquid staking segment within the Ethereum ecosystem. Despite its seemingly simple mechanism, these platforms are proving to deliver substantial capital efficiency and lower the barriers for DeFi users.