Raft’s stablecoin rises with traders adopting liquid staking Ether products.

The stablecoin issuer Raft has reached a total value locked (TVL) of $55 million, with its flagship token backed by staked ether (stETH) from Lido. This is a positive sign for the young protocol, which is only three weeks old. Raft’s TVL has grown by 4,595% since June 5, even as other protocols building stETH-backed stablecoins have stalled. For example, Lybra’s TVL has remained around $180 million for the month, with its eUSD stablecoin having a market cap of $84 million, while Raft’s R sits at $29 million.

The surge in Raft’s popularity highlights the growing market for liquid staking tokens, which enable users to maintain liquidity while earning rewards for securing the Ethereum blockchain. The liquid staking sector has a combined TVL of more than $20 billion, making it the top DeFi protocol ahead of decentralized exchanges, lending platforms, and bridging protocols.

Raft CEO David Garai has stated that the company “will be adding other staking derivatives as collateral over the next few weeks,” which he predicts will significantly increase TVL. While Raft is centered around its R stablecoin, the team has also discussed introducing RAFT, an additional token intended to empower community members and help decentralize the protocol.

Edited by Danny Nelson.