Staking is accelerating. Last September, the network Ethereum has completed its transition to Proof of Stake. Since then, the number of ETH deposited in staking has continued to increase. So much so that 20% of the ETH in circulation have been deposited in staking.
23 million ETH deposited in staking on Ethereum
On April 13, i.e. 8 months after the transition to Proof of Stake, the Shapella update has opened withdrawals on ETH deposited in staking. Indeed, until now the ETH deposited in staking were blocked on the beacon chain.
While many Ethereum critics predicted a massive ETH leak, the phenomenon is quite different.
So, although almost a million ETH were withdrawn in the first week after Shapella, deposits meanwhile did not slow down.
On the contrary, the number of ETH deposited in staking has continued to increase. Thus, according to the data compiled by Nansen, it is more than 23 million ETH staked on Ethereum.
In practice, this represents 220 billion dollars, or 20% of the total supply of ETH in circulation.
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Lido: the big winner on Ethereum
Faced with the blocking of ETH deposited pre-shapella, many Liquid Staking protocols have emerged. Among them, Lido was able to pull out of the game to a large extent.
Thus, Lido is a protocol that allows users to earn staking rewards while having access to the liquidity of their staked ETH in the form of stETH.
Within a few months, Lido grew exponentially and became one of the leading staking protocols for Ethereum.
In practice, Lido is the first staking provider for Ethereum. In total, the protocol brings together 30% of all ETH deposited in staking.
This dominance of Lido can be explained in particular by the recent SEC attacks on ETH staking. Sure enough, the SEC has gone after many companies offering staking services for Ethereum. In turn, she accused Kraken or Coinbase to operate an unregulated offer.
Following these attacks, Kraken had no choice but to end its staking offer. Faced with this threat from the SEC, many users have chosen to turn to Lido, which offers a decentralized alternative.
For their part, the Ethereum developers are now gearing up for the Cancun update. This will introduce Proto-Danksharding, a new type of transaction that will drastically improve the performance of rollup-type second-layer solutions.
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