Solana’s Marinade Protocol Charts Growth Amidst ETP and ETF Integration

Marinade Native Surges as New Products and Institutional Interest Drive Q2 2025 Expansion

The second quarter of 2025 marked a period of significant advancement for Marinade, a prominent liquid staking protocol on the Solana blockchain. The protocol reported substantial growth across its offerings, highlighted by a notable increase in its native staking product and the successful launch of new initiatives. This expansion was underpinned by increasing institutional adoption and strategic integrations, positioning Marinade for continued influence within the rapidly evolving digital asset landscape.

According to data compiled for the “State of Marinade Q2 2025” report, Marinade facilitated the de-staking of 11.1 million SOL tokens across its three primary products during the quarter. This activity underscores the dynamic nature of liquidity and asset management within the Solana ecosystem. A key development was the 21% quarter-over-quarter (QoQ) increase in Marinade Native’s Total Value Locked (TVL), which reached 5.3 million SOL. This surge propelled Marinade Native to become the protocol’s largest staking product, overtaking its previously dominant mSOL offering.

The quarter also witnessed the introduction of Marinade Select, a new product designed to cater to specific staking needs. Marinade Select quickly garnered traction, achieving a TVL of 845,000 SOL shortly after its launch. The strategic importance of these developments is further amplified by Marinade’s role in broader financial product integrations. Marinade Native currently serves as the staking provider for the Bitwise Solana Staking ETP, a regulated investment vehicle offering exposure to Solana staking rewards. Concurrently, Marinade Select has been designated as the staking provider for Canary Capital’s proposed Canary Marinade Solana ETF, pending regulatory approvals. These institutional-grade integrations signal a growing acceptance of liquid staking solutions within traditional finance.

The protocol’s revenue stream also demonstrated a healthy rebound in the latter half of the quarter. This recovery was attributed to the influx of new validators into the Stake Auction Marketplace and a noticeable acceleration in institutional engagement with Marinade’s services. This resurgence in revenue, coupled with the expansion of its product suite and strategic partnerships, paints a picture of a protocol actively navigating and capitalizing on market opportunities.

Context & Background

To fully appreciate the significance of Marinade’s Q2 2025 performance, it’s essential to understand the broader context of liquid staking and its role within the Proof-of-Stake (PoS) blockchain landscape, particularly on Solana. Liquid staking protocols allow users to stake their native tokens, such as SOL, while simultaneously receiving a liquid derivative token. This derivative token, like Marinade’s mSOL or the SOL staked within Marinade Native, can then be used in decentralized finance (DeFi) applications, offering users the opportunity to earn staking rewards and participate in DeFi activities without locking up their staked capital.

Solana, known for its high throughput and low transaction costs, has become a prominent platform for innovation in the DeFi space. The network’s architecture, which leverages a combination of Proof-of-History (PoH) and Proof-of-Stake (PoS), enables rapid transaction finality and a scalable infrastructure. Staking is a fundamental component of Solana’s security and consensus mechanism, where SOL holders can delegate their tokens to validators to secure the network and earn rewards. However, directly staking SOL often involves lock-up periods and a lack of liquidity.

Marinade emerged as a leading solution to address these limitations. By offering a liquid staking experience, Marinade democratized access to staking rewards and DeFi participation. Marinade Native, its flagship product, allows users to stake SOL and receive mSOL in return, representing staked SOL plus accrued staking rewards. This mSOL can then be utilized in various DeFi protocols like lending platforms, decentralized exchanges, and yield farms, thereby enhancing capital efficiency.

The introduction of Marinade Select represents an evolution in Marinade’s strategy. While the specifics of Marinade Select’s offering are detailed in its official documentation, it suggests a move towards more tailored or specialized staking services, potentially catering to specific investor needs or regulatory requirements. The success of Marinade Select in attracting a significant TVL shortly after its launch indicates a market demand for such diversified offerings.

The integration of Marinade’s services into regulated financial products like ETPs and ETFs is a watershed moment for the entire liquid staking industry. Exchange-Traded Products (ETPs) and Exchange-Traded Funds (ETFs) are traditional investment vehicles that offer investors exposure to underlying assets through a regulated and familiar structure. The inclusion of Solana staking, facilitated by Marinade, within these products signals a growing institutional appetite for yield-generating digital assets and a maturation of the digital asset market towards greater integration with traditional finance. This move can also be seen as a validation of the security and reliability of Marinade’s staking infrastructure.

Furthermore, the Stake Auction Marketplace, mentioned as a driver of revenue rebound, likely refers to a mechanism where new validators compete for delegation from Marinade, ensuring a competitive and high-quality validator set for the network. Increased activity in this marketplace suggests growing demand for validator services on Solana, which Marinade facilitates and benefits from.

In-Depth Analysis

The Q2 2025 performance report from Marinade highlights several critical trends and strategic successes for the protocol. The surpassing of mSOL by Marinade Native as the protocol’s largest staking product is a particularly telling development. While mSOL has been the cornerstone of Marinade’s liquid staking offering for a considerable period, the growth of Marinade Native indicates a strategic shift or a maturing user base that is increasingly opting for the direct staking model offered through this product.

The 21% QoQ TVL growth for Marinade Native to 5.3 million SOL represents a substantial inflow of capital. This growth is not merely an indicator of increased user adoption but also reflects the growing confidence in Solana’s staking ecosystem and Marinade’s reliability as a staking provider. The shift in dominance from mSOL to Marinade Native might also be attributed to several factors:

• Simplicity and Directness: Marinade Native might offer a more straightforward staking experience compared to managing the mSOL derivative in DeFi.
• Yield Optimization: Marinade Native could be structured to optimize yield more directly for users who are primarily focused on staking rewards rather than DeFi integration.
• Institutional Demand: The direct staking model offered by Marinade Native might be more attractive to institutional investors who are seeking exposure to Solana staking rewards through a regulated or more controlled mechanism, especially given its role with the Bitwise Solana Staking ETP.

The launch and rapid growth of Marinade Select to 845,000 SOL in TVL is another significant achievement. The fact that it has secured the role of staking provider for a proposed Solana ETF suggests that Marinade Select is designed with institutional-grade requirements in mind, potentially offering features like segregated staking pools, enhanced compliance, or specific yield-sharing models. The success of Marinade Select so early in its lifecycle points to a clear demand for specialized staking solutions that can bridge the gap between institutional requirements and the nascent DeFi space.

The dual role of Marinade as a staking provider for both a Solana ETP and a proposed Solana ETF is a major milestone. For the Bitwise Solana Staking ETP, Marinade Native’s involvement signifies a robust and compliant staking infrastructure capable of supporting regulated financial products. This integration provides traditional investors with a regulated avenue to gain exposure to Solana staking yields without directly interacting with the complexities of cryptocurrency staking. Similarly, the selection for the Canary Marinade Solana ETF, if approved, would further cement Marinade’s position as a trusted partner for institutional capital seeking exposure to Solana.

The protocol revenue rebound, driven by new validators in the Stake Auction Marketplace and accelerated institutional adoption, is a positive indicator of Marinade’s business sustainability. A healthy revenue stream is crucial for ongoing development, security enhancements, and incentivizing the validator ecosystem. The influx of new validators suggests that Marinade’s marketplace is competitive and attracts high-quality operators. Increased institutional adoption, as evidenced by the ETP/ETF integrations, directly contributes to higher AUM (Assets Under Management) and, consequently, higher fee-based revenue for Marinade.

From a technical perspective, Marinade’s ability to scale its infrastructure to support these growing demands and integrate with external financial products speaks to the maturity of its platform. Ensuring the seamless flow of staked assets, the accurate calculation and distribution of rewards, and the compliance with various regulatory frameworks are complex operational challenges that Marinade appears to be effectively managing.

The interplay between Marinade Native and mSOL also warrants consideration. While Marinade Native has surpassed mSOL in TVL, mSOL remains a critical component of the Solana DeFi ecosystem. The continued utility of mSOL in DeFi protocols ensures ongoing demand and liquidity for the derivative. The success of Marinade Native could potentially create a virtuous cycle where users, after experiencing Marinade’s staking services directly, might also explore the DeFi applications of mSOL, or vice versa. The protocol’s ability to manage both these offerings effectively provides a comprehensive suite of options for different user segments.

The reliance on external financial products like ETPs and ETFs also introduces a new layer of dependency. While these integrations drive growth, they also mean that Marinade’s performance can be influenced by the success and regulatory landscape of these traditional finance products. However, the positive correlation is likely strong, as institutional interest in digital assets continues to grow.

Pros and Cons

Pros:

• Strong Growth Momentum: The 21% QoQ TVL increase in Marinade Native and the rapid adoption of Marinade Select demonstrate significant user and capital inflow.
• Institutional Adoption: Being the staking provider for the Bitwise Solana Staking ETP and a proposed Solana ETF signifies a high level of trust and technical capability, bridging traditional finance and DeFi.
• Diversified Product Offering: The success of both Marinade Native and Marinade Select shows Marinade’s ability to cater to different user needs and market segments.
• Revenue Rebound: The recovery in protocol revenue indicates a sustainable business model and increasing economic activity around the protocol.
• Ecosystem Contribution: Marinade plays a vital role in securing the Solana network through staking and facilitating liquidity within the Solana DeFi ecosystem.
• Innovation: The continuous development and launch of new products like Marinade Select showcase a commitment to innovation and adapting to market demands.
• Strategic Partnerships: Collaborations with entities like Bitwise and Canary Capital expand Marinade’s reach and legitimacy.

Cons:

• Regulatory Uncertainty: The proposed Canary Marinade Solana ETF is subject to regulatory approval, which could impact the adoption and success of Marinade Select. The broader regulatory environment for digital assets and staking services remains a potential challenge.
• Dependence on Solana Ecosystem: Marinade’s performance is intrinsically linked to the health and adoption of the Solana blockchain. Any significant issues or declines in Solana’s network could impact Marinade.
• Competition: The liquid staking space is competitive, with other protocols vying for market share on Solana and other PoS networks.
• Smart Contract Risk: Like all DeFi protocols, Marinade is subject to smart contract vulnerabilities, although robust auditing and security practices are expected.
• Market Volatility: The value of SOL and other digital assets is subject to high volatility, which can impact the TVL and overall returns for stakers.
• Complexity for New Users: While liquid staking simplifies the process, understanding the nuances of derivative tokens and DeFi integration can still be a barrier for some users.

Key Takeaways

• Marinade experienced substantial growth in Q2 2025, with Marinade Native becoming its largest staking product, surpassing mSOL in TVL.
• The launch of Marinade Select was successful, quickly accumulating significant TVL and securing a key role in institutional financial products.
• Marinade’s integration as a staking provider for the Bitwise Solana Staking ETP and the proposed Canary Marinade Solana ETF highlights its growing importance in bridging traditional finance with digital assets.
• Protocol revenue saw a notable rebound, driven by increased activity in the Stake Auction Marketplace and accelerated institutional adoption.
• These developments underscore Marinade’s robust infrastructure, strategic partnerships, and its increasing influence within the Solana ecosystem and the broader digital asset market.

Future Outlook

The trajectory for Marinade in the latter half of 2025 and beyond appears promising, contingent on several key factors. The continued growth of the Solana ecosystem itself will be a primary driver. As Solana attracts more users, developers, and institutional capital, the demand for reliable staking solutions like Marinade is likely to increase. The success of the proposed Canary Marinade Solana ETF, should it receive regulatory approval, would be a significant catalyst, further solidifying Marinade’s position as a preferred staking provider for institutional products and potentially opening doors for similar collaborations.

Marinade’s ability to innovate and adapt will be crucial in navigating the competitive liquid staking landscape. Further development of specialized products like Marinade Select, potentially tailored to different risk appetites, yield expectations, or regulatory frameworks, could capture new market segments. Enhancements to the user experience, particularly for those less familiar with DeFi, could also drive broader adoption.

The increasing institutional interest in yield-generating digital assets suggests a sustained trend towards regulated access. Marinade’s existing partnerships position it well to capitalize on this trend. Continued efforts in compliance, security, and transparent reporting will be paramount in maintaining and expanding these institutional relationships.

Furthermore, Marinade’s role in the Solana ecosystem extends beyond just staking. Its utility within DeFi protocols using mSOL also contributes to the overall health and dynamism of the ecosystem. As new DeFi applications emerge on Solana, the demand for liquid staked tokens will likely persist, benefiting Marinade.

However, challenges remain. The evolving regulatory landscape for digital assets globally poses an ongoing risk. Any adverse regulatory changes could impact Marinade’s operations or the appeal of its institutional integrations. The inherent volatility of cryptocurrency markets also means that TVL figures can fluctuate significantly. Marinade will need to continue to demonstrate resilience and strategic agility to overcome these challenges and maintain its growth trajectory.

Call to Action

For individuals and institutions seeking to participate in the growth of the Solana ecosystem and earn staking rewards, exploring Marinade’s offerings is a compelling next step. Investors interested in regulated exposure to Solana staking can look to the Bitwise Solana Staking ETP and monitor the progress of the proposed Canary Marinade Solana ETF.

For those who prefer direct engagement with the digital asset space, understanding the benefits and functionalities of Marinade Native and Marinade Select is recommended. Visiting the official Marinade Finance website and reviewing their comprehensive documentation will provide deeper insights into their services, staking mechanics, and the associated risks and rewards. Engaging with the Marinade community through their official channels can also offer valuable perspectives and support.