Solana News Today: Binance’s $bnSOL Challenges $JitoSOL for Solana’s LST Crown

Solana's liquid staking ecosystem continues to expand, with the total amount of $SOL staked via liquid staking tokens (LSTs) reaching 57 million, a record high since the introduction of liquid staking on the platform [2]. As of August 2025, LSTs represented 13.65% of the total 418 million $SOL staked on Solana, reflecting a steady increase in adoption and utility within decentralized finance (DeFi) applications [2]. This growth has been driven by rising $SOL prices and growing staking activity, with the Solana LST market cap rising by 93.6% between March and August 2025, reaching $11.66 billion from $6.02 billion [2].

The LST ecosystem is composed of three primary categories: LST Pools, CEX-issued LSTs, and Validator-issued LSTs. LST Pools lead the market, accounting for 51.4% of the total LST market cap as of August 2025. CEX-issued LSTs, including tokens such as $bnSOL and $bbSOL from Binance and Bybit in collaboration with Sanctum, have collectively grown to a TVL of $2.8 billion, representing 24.1% of the market [2]. Validator-issued LSTs have also gained traction, contributing $2.2 billion to the total market cap, or 18.8%, with over $720 million added in August alone [2].

At the token level, $JitoSOL remains the dominant player with a market cap of $2.97 billion, representing 26% of the LST market. However, $bnSOL, issued by Binance in partnership with Sanctum, has shown significant growth, with a market cap of $2.3 billion (20.2%). Recent supply dynamics indicate a shift in the balance of power: over the past 7 days, $bnSOL increased by more than 561,000 tokens, while $JitoSOL saw a supply decline of over 143,000 tokens [2]. On a 90-day horizon, $dzSOL, launched by LayerZero in January 2025, recorded the highest supply increase of over 3 million tokens, capturing 5.4% of the LST market [2].

The expansion of the LST sector has been fueled by increased utility in DeFi platforms, where LSTs are being used for lending, trading, and other financial services. While native staking still dominates the overall staking landscape, LSTs are gaining momentum, with their market penetration growing steadily since mid-2023 [2]. Analysts suggest that further integration of LSTs into DeFi platforms could lead to even greater adoption, potentially increasing the total amount of staked $SOL and the market capitalization of the LST sector.

Looking ahead, the competition between $JitoSOL and $bnSOL is expected to intensify, with $bnSOL emerging as a strong contender to overtake $JitoSOL as the largest LST by market cap. The performance of newer entrants like $dzSOL will also be crucial in shaping the future of the LST market. With the current penetration rate at 13.65%, there is significant potential for further growth, particularly as the DeFi ecosystem on Solana continues to evolve [2].

Source: [1] Solana Staking - A Step by Step Guide for Beginners (https://www.tokenmetrics.com/blog/solana-staking) [2] Liquid Staked SOL Climbs to Record 57M, 13.6% of total (https://solanafloor.com/news/liquid-staked-sol-climbs-to-record-57-m-13-6-of-total-staked-supply)