Lido Finance Hits One Million Ethereum Validators Milestone
Lido Finance, a leading DeFi protocol specializing in Ethereum liquid staking, has marked a significant milestone by reaching one million Ethereum validators.
The announcement, made on April 29th via a post on X, underscores Lido Finance’s prominent role in the DeFi sector.
1 million validators pic.twitter.com/fELATWQPIu
— Lido (@LidoFinance) April 29, 2024
Liquid staking protocols, including Lido Finance, are instrumental in democratizing staking for retail users with limited capital. Traditionally, operating validator nodes on Ethereum required 32 ETH. However, Lido Finance offers an alternative route, broadening staking accessibility to a wider audience.
Data from Dune reveals that Lido Finance commands a significant portion, 28.5%, of staked Ether, with an additional 13.6% staked through the Coinbase exchange. Currently, over 27% of the total Ether supply is engaged in staking activities.
READ MORE: MakerDAO Plans Launch of Two New Tokens
The appeal of liquid staking protocols lies in the liquidity benefits they offer. Users staking through Lido receive Lido Staked ETH (stETH) in return, which can be utilized across various DeFi protocols. This differs from traditional staking methods, where staked Ether remains locked during the staking period.
The rise of liquid staking, exemplified by protocols like Lido, has significantly contributed to the growth of DeFi. TVL in DeFi protocols surged to $97 billion in the first quarter of 2024 from $36 billion in the fourth quarter of 2023. Despite concerns raised about potential centralization risks associated with Lido’s dominance, its role in expanding DeFi accessibility remains pivotal.
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.
