Ethereum Staking Landscape Shifts as Lido’s Market Share Falls Below 30%

Based on new information from blockchain analysis firm Dune, it appears that the decrease can be explained by an increase in new Ethereum stakers joining the market. This influx of new participants has lessened worries about Lido’s significant presence.

Lido’s Staking Market Share Falls

Lido has been the sole contender in the Ethereum staking market for an extended period due to a scarcity of competition in the area of liquid staking solutions. Notably, Lido provides users with the chance to generate passive income from their staked assets on other blockchain networks, such as Solana (SOL), expanding its influence.

Due to the increasing number of users adopting this protocol, there are growing anxieties within the Ethereum community. With over a third of the market under its control, there is a concern that it may have the power to influence or manipulate certain features of the Ethereum blockchain.

Starting from April 4, 2024, other significant competitors entered the market and caused Lido’s stake in Ethereum to drop beneath the 30% mark.

According to Dune’s data, there are robust competitors emerging in the Ethereum staking market, making it more vibrant and diverse.

Anonymous Entity

Among the competitors in the ETH staking market are well-known companies like Binance and Coinbase, in addition to Ethereum staking platform Kiln.

In simpler terms, Coinbase holds a market share of approximately 14.04%, followed by Binance with around 3.75%, and Kraken at about 3.5%.

Although Coinbase and Binance hold significant market shares in Ethereum staking, the second biggest player in this area remains a mystery with an unidentified entity holding approximately 16.9% of the market. (Dune refers to this entity as “unidentified.”)

In total, there are 26 known entities participating in Ethereum staking with lesser market share.

Among these platforms, some have lower fees than others. For instance, Kraken charges a fee of 2.4%, Bitcoin Suisse has a fee of 1.6%, OKX offers a fee as low as 1.2%, and Upbit even goes below that with a fee of 1.1%.

Interests in Crypto Staking is on the Rise

At a point when the staking sector is witnessing growing excitement, Lido’s declining market share in staking is occurring. Investors are seeking out new chances in the industry to generate higher income.

In recent findings, data from Google Finance revealed that rewards from crypto staking have exceeded dividends given by companies within the S&P 500 index by a substantial 450% margin. Simply put, returns from digital asset staking platforms have surpassed the yield gained through S&P 500 company dividends.

The dividend yields for companies like Microsoft, Nvidia, and Apple are approximately 0.71%, 0.56%, and 0.02% respectively. In contrast, the average annual return for crypto staking is around 6.08%.

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2024-04-04 14:59