Lido’s Dominance Over Ethereum Staking is Rapidly Growing

• Since the Ethereum merge update, the Lido (LDO) platform has been at the center of the old staking process.
• The number of new Lido addresses holding stETH tokens has shown a steady upward trend throughout the year.
• Lido currently controls approximately 31.96% of the ETH staked, solidifying its dominance in the industry.

According to the latest data obtained by COINOTAG, it is evident that Lido is rapidly increasing its dominance over ETH staking, surpassing its closest competitor by almost four times.

Lido Successfully Attracts ETH Stakers

Since the Ethereum merge update, the Lido (LDO) platform has been at the center of the old staking process, and its significance and impact have increased significantly, especially after the Shanghai upgrade. On May 15, Lido announced the highly anticipated V2 update, allowing node operators to withdraw their staked ETH and enabling those holding stETH tokens to directly exchange them for ETH.

As a result, approximately 400,000 stETH tokens worth around $721 million were redeemed. This redemption led to a contraction in the overall stETH supply. However, despite this decrease, Lido attracted a significant amount of new ETH investments, more than compensating for the decrease. The inflow was so substantial that it pushed stETH to its all-time high (ATH) level of 7.49 million tokens.

This achievement further solidified Lido’s undisputed leadership position in the liquid staking sector, surpassing its closest competitor’s supply by a staggering 16 times.

Additionally, the number of new Lido addresses holding stETH tokens has shown a steady upward trend throughout the year, according to Glassnode. This indicates that a significant portion of new investments made through Lido is driven by existing stETH token holders seeking to increase their exposure to the platform.

Current Market Share in the Staking Market

According to the latest data, Lido currently holds the largest market share in the ETH staking market, with approximately 31.96% of the ETH staked under its control.

These statistics demonstrate significant growth for the platform across different time intervals. Just in the past week, there was a 2% increase in Lido’s market share, indicating a consistently rising trend.

Looking at a broader timeline, Lido has recorded an effective growth of 7% in the past month and 63% in the past six months.

Rising TVL in Lido

Interesting trends were observed in the Total Value Locked (TVL) in Lido according to recent data. The graph shows an increase in TVL after the introduction of the ETH withdrawal function.

This aligns with Glassnode’s data, which reports that users are staking more on the withdrawal function. Currently, the TVL in Lido is over $14 billion at the time of writing this article.