Blockchain analytics company, Glassnode, released a report on April 9, 2023, revealing a slight decrease in Ethereum staking deposits in recent weeks and attributed this to the upcoming Shapella upgrade and increased regulatory pressure.
The report noted that Lido’s liquid staking platform had gained a significant market share, causing major centralized exchanges like Coinbase, Binance, and Kraken to lose a substantial portion of their market share.
Deposit trends by staking providers have exhibited a clear shift over time with Kraken, Binance and Coinbase jousting for deposit allocations across the Beacon Chain’s early days.
As the dust settled between the three giants, it was Lido who emerged victorious, continuing to… pic.twitter.com/yp50NWQ5XJ
— glassnode (@glassnode) April 9, 2023
Lido now controls almost a third of the total ETH staked, equivalent to approximately $11 billion from the 5.9 million ETH held on its platform.
In contrast to centralized exchanges like Coinbase, which charges a substantial 25% commission on staking rewards, Lido takes a lower 10% commission and offers the opportunity to earn extra yields on DeFi platforms through its staking token, stETH. This has led to a shift towards more profitable platforms by investors.
Industry experts anticipate that liquid staking platforms, such as Lido, will experience a surge in popularity when ETH is released from the Beacon Chain after the Shapella upgrade.
Ethereum developer, Tim Bieko, announced via Twitter on February 21, 2023, that the Shapella upgrade, also known as the Shanghai/Capella network upgrade, would be deployed on the Sepolia testnet on February 28, 2023.
The upgrade will allow validators on the Ethereum network to transfer their staked Ethereum tokens from the Beacon Chain, which functions as Ethereum’s Proof-of-Stake blockchain, managing the registry of validators and coordinating the shard chains, to the execution layer. To become a validator on the Ethereum network, a minimum of 32 ETH is required, and validators are rewarded in ETH for staking their tokens to ensure the security of the network.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
