Phantom Launches PSOL Token to Enter the Liquid Staking Race

The market for Solana (SOL) liquid staking tokens gained a new entrant. On Tuesday, May 14, Phantom launched its own liquid staking token, PSOL

May 14, 2024

Solana’s biggest crypto wallet has entered the liquid staking race, launching its own PSOL token.

The market for Solana (SOL) liquid staking tokens gained a new entrant. On Tuesday, May 14, Phantom launched its own liquid staking token, PSOL, enabling users to stake SOL while retaining liquidity for use in DeFi.

We’re launching our own LST: Phantom Staked SOL (PSOL) ?Why liquid stake with Phantom?Simple:? Earn SOL rewards?️‍♂️ Maintain liquidity? Support the @solana network pic.twitter.com/vejAarVXmd

The liquid-staked PSOL will be available directly within Phantom Wallet, the most popular wallet app on the Solana network. To incentivize adoption, Phantom has made the staking interface user-friendly, even for traders unfamiliar with liquid staking. Users can access the feature by clicking “Start earning SOL” on the Solana token page in the app.

Still, users in some jurisdictions, like the UK, will be excluded from the feature due to regulations that prohibit staking.

Solana’s liquid staking ecosystem sees a rapid rise

According to Phantom, the move into liquid staking is part of its effort 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. Jito, Binance, Marinade, and Jupiter liquid staked SOL tokens account for the majority of this market. Still, the value of these tokens declined from its all-time high of $10 billion in the last week of January 2025.

Solana is positioning liquid staking as a way for users to maintain liquidity while earning yield and helping secure the network. With liquid staking, users lock up real SOL and receive an equivalent amount in liquid staked SOL, such as PSOL.

These liquid tokens can then be used across DeFi protocols to earn additional rewards. On the flipside, issuing liquid staked SOL increases the effective circulating supply of SOL, which may exert downward pressure on its price.