Phantom wallet, one of the most popular on the Solana network, has launched a new token, PSOL, for liquid staking, providing users with the opportunity to earn rewards while maintaining liquidity.
Launch of PSOL and Its Features
On May 14, Phantom announced the launch of the Phantom Staked SOL (PSOL) token, allowing users to stake SOL while retaining liquidity for DeFi use.
Phantom has introduced a user-friendly staking interface that can be utilized even by traders unfamiliar with the system. Users can easily access this feature by clicking on "Start earning SOL" on the Solana token page in the app.
Liquid Staking Market on Solana
According to Phantom, their entry into liquid staking is part of its strategy to support the broader Solana ecosystem, which has seen rapid growth in liquid staking over the past few months.
The total market cap for staked SOL tokens was $7 billion in May, while Jito, Binance, Marinade, and Jupiter tokens account for the majority of this market.
Impact of Liquid Staking on SOL Price
Liquid staking is positioned by Solana as a way for users to maintain liquidity while earning yield and securing the network. Users can lock up real SOL and receive an equivalent amount in liquid staked tokens like PSOL.
However, the issuance of liquid staking tokens increases the effective circulating supply of SOL, which may exert downward pressure on its price.
The launch of PSOL by Phantom marks an important step in the development of liquid staking on Solana, enabling users to earn rewards while accessing liquidity, potentially impacting the market significantly.
