Stacking Insights: What Ethereum and Solana Tell Us About the Future

How big is the Stacks stacking market right now?

Currently, there are over 1.49 billion STX in circulation, representing 100% of the total supply, giving Stacks a market cap of $2.5 billion, placing it among the top 40 tokens.

Around 28% of all STX tokens are Stacked, making the Stacking market worth approximately $760M. While on the liquid staking side, Stacking DAO’s TVL has surpassed $105M, accounting for 14% of the overall Stacking market.

In a bull market, these numbers could easily double or more given STX previously reached an all-time high of $3.89, compared to today’s $1.89, which would significantly boost the size of the Stacking market.

This could attract a wave of new users seeking to earn yield in both BTC and STX on their holdings, increasing the relevance of Stacking as a core component of the ecosystem.

To better assess the growth potential of the Stacks stacking ecosystem, it's essential to examine on-chain data from other ecosystems.

Ethereum and Solana Staking Metrics

Starting with the Ethereum ecosystem, out of 120 million ETH in circulation ($320B MC), 34.5M ETH are staked, representing 28% of the total supply. The liquid staking ecosystem accounts for around 33% of the Ethereum staking market, valued at $30B.

In contrast, the Solana ecosystem has 585 million SOL in circulation (with an $85B MC), of which 66%—or 366 million SOL—is staked. However, only 6% of the Solana staking market is currently represented by liquid staking protocols.

Interestingly, the Ethereum staking market has a lower staking rate but a greater reliance on liquid staking protocols, while Solana shows the opposite trend. This is likely because:

• Staking on Solana is straightforward with no minimum requirements, making it easy for users to stake directly.
• Ethereum’s robust DeFi ecosystem, which integrates liquid staking tokens, provides additional incentives to use protocols like Lido and DeFi to maximize yield.

What Insights Can Solana and Ethereum Data Offer for the Future of Stacks Stacking?

The Stacks stacking market has significant room for growth.

Currently offering a high yield of 9% APY, Stacks stacking is appealing but presents challenges, such as the minimum requirement of 100,000 STX (worth $180K+) for solo staking. Several trends could develop as a result:

1. The staking market is likely to expand as more people take advantage of Stacking’s high yield to earn rewards in BTC or STX. It’s reasonable to expect the current 28% staking rate to increase—potentially matching Ethereum’s 33% or even reaching Solana's 60% and beyond.
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2. As solo staking remains complex, more Stacks users are likely to rely on liquid staking protocols like Stacking DAO.
   In addition to simplifying the process, Stacking DAO liquid staking token can be leveraged across DeFi for additional yield. Given that Lido captures 28% of Ethereum’s staking market, Stacking DAO’s current 14% share could easily grow to 30% or more as demand increases.

In a moderate/bull scenario where the price of STX reaches $5, the stacking rate increases to 50%, and Stacking DAO’s market share grows to 25%, the overall staking market would soar to a massive $3.7 billion, with Stacking DAO's TVL approaching nearly $1 billion.

In conclusion, as the Stacks ecosystem continues to expand—driven by new DeFi protocol launches and growing adoption among institutions and exchanges—the stacking market will benefit.

More users are likely to stack STX for yield, with an increasing number turning to liquid stacking solutions for added flexibility and returns.

Stacking DAO Details:

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