Ethereum Staking Landscape Sees Shift Away from Lido Dominance

Lido Finance, a prominent player in Ethereum's staking realm with close to 10 million ETH deposits, has wielded considerable influence in the market.

However, recent developments have seen its dominance wane, with its stake dropping below 30% amid the rise of alternative liquid restaking protocols.

Ethereum observer Anthony Sasson noted this shift, attributing it in part to a significant attack by Puffer amounting to over $1 billion.

Sasson advocates for increased competition in the staking sector to curb Lido’s monopolistic tendencies, foreseeing a more decentralized ecosystem as competition intensifies.

These discussions echo concerns raised by Evan Van Ness in September 2023 about Lido’s growing dominance, which reached 33% at the time, posing risks of network manipulation.

While Lido’s platform offers returns from staking and provides users with liquid derivatives of their locked ETH, enabling participation in decentralized finance (DeFi), the emergence of platforms like Ether.fi presents a challenge to Lido’s stronghold.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.