Phantom introduces PSOL, a liquid staking token that lets users earn staking rewards without locking up their Solana tokens or sacrificing liquidity
Solana’s largest crypto wallet has entered the liquid staking sweepstakes by introducing its PSOL token.
A new entrant has entered the market for liquid staking tokens of Solana (SOL). Phantom introduced its liquid staking token, PSOL, on Tuesday, May 14, which allows users to stake SOL while maintaining liquidity for DeFi.
Phantom Wallet, the Solana network’s most widely used wallet application, will provide direct access to the liquid-staked PSOL. Phantom has designed the staking interface to be user-friendly for merchants unfamiliar with liquid staking to encourage adoption. Users can access the feature by selecting “Start earning SOL” on the Solana token page in the app.
Nevertheless, the feature will be unavailable to users in certain jurisdictions, such as the United Kingdom, due to regulations that forbid staking.
The liquid staking ecosystem of Solana is experiencing a rapid expansion.
Phantom asserts that the transition to liquid staking is a component of its initiative to support the broader Solana ecosystem. It has experienced substantial growth in liquid staking in recent months.
In May, the aggregate market capitalization of staked SOL tokens was $7 billion. The preponderance of this market is comprised of liquid-staked SOL tokens from Jito, Binance, Marinade, and Jupiter. Nevertheless, the value of these tokens has decreased from its all-time peak of $10 billion in the final week of January 2025.
Solana is promoting liquid staking as a method for users to preserve liquidity, earn a yield, and contribute to the network’s security. Liquid staking enables users to secure real SOL and receive an equivalent quantity in liquid-staked SOL, such as PSOL.
The liquid tokens can be subsequently utilized across DeFi protocols to obtain additional rewards. Conversely, the issuance of liquid-staked SOL may decrease its price by providing an adequate circulating supply.
