Lido's Share of Staked ETH Drops Below 30%
Lido's Share of Staked ETH Drops Below 30%
The proportion of ETH staked through Lido Finance has fallen below the 30% threshold at the beginning of this week.
According to the latest on-chain data from Hildobby, the staking share through Lido has decreased to 29.5%. The last time it dropped below 30% was in March 2023, at approximately 29.5%.
This development quickly garnered attention from the DeFi community, especially given the growing concerns about Lido's dominance potentially impacting the overall network's security.
Read More: [Community Concerns Over Lido Finance Dominating 33% of Staked ETH]
Some opinions suggest that the rise of Restaking has helped redistribute the share among various Liquid Staking Tokens and even Restake Native activities. On April 1, Lido saw the largest outflow of ETH among all protocols. Meanwhile, ether.fi and Renzo, two Liquid Restaking protocols, recorded the highest inflows of ETH.\
Lido now has the highest ETH staking outflow of any protocol while @ether_fi & @RenzoProtocol have the highest inflows
— hildobby (@hildobby_) April 2, 2024
src: https://t.co/EkK4n7QpXS pic.twitter.com/gElyNB8ZV3
The Ethereum community has generally reacted positively to this shift. Moreover, as mentioned in the EIP-7251 upgrade, barriers for individual node operators will be lowered, which will help decentralize the validator node structure in the network following the Pectra upgrade.
