Phantom Launches PSOL Liquid Staking Token on Solana, Boosting DeFi Options and Yield Strategies
Phantom, Solana’s leading crypto wallet, has deepened its DeFi integration by introducing its own liquid staking token, PSOL, on May 14, 2025. This move allows users to stake SOL directly in the Phantom Wallet and receive PSOL tokens, which remain liquid and usable across DeFi protocols. Previously, Phantom integrated liquid staking via third-party tokens like JitoSOL, but now traders have a native option for enhanced convenience and user education. The expansion simplifies SOL staking, broadens access to DeFi strategies, and increases SOL’s liquidity as PSOL can be used for yield generation activities without locking up the original tokens. However, due to regulatory restrictions, users in some regions including the UK are excluded from this feature. The launch occurs as liquid staking on Solana gains significant momentum, though the total market cap of staked SOL tokens decreased from $10 billion in January to $7 billion in May 2025. Major protocols like Jito, Binance, Marinade, and Jupiter remain principal players, but Phantom’s entry diversifies trader options and supports Solana’s DeFi ecosystem growth. Liquid staking boosts yield potential but also increases the effective circulating supply of SOL, possibly leading to greater price volatility. For crypto traders, the development creates fresh trading opportunities and requires careful monitoring of liquidity and associated risks.
Neutral
Phantom’s launch of its native PSOL liquid staking token significantly expands options for Solana traders, enabling easier participation in DeFi and more flexible yield strategies. Liquid staking typically supports ecosystem growth and trading activity. However, the increased liquidity from PSOL raises the effective circulating supply of SOL, which can dampen upward price pressure and introduce additional volatility. Additionally, the rollout does not fundamentally change the long-term Solana landscape or provide a clear bullish or bearish catalyst on its own. As such, while the development is important for user experience and DeFi infrastructure, its immediate price impact is likely neutral. Traders should watch for shifts in staking participation and liquidity, which could influence SOL’s volatility over time.