Lido Emerges as Top Player in Ethereum’s Liquid Staking Space, Reveals Glassnode
• Ethereum is transitioning from a PoW system to a PoS system, allowing investors to become validators by staking 32 Ethers.
• Lido DAO has emerged as the top player in Ethereum’s liquid staking space, with $14 billion worth of assets locked in stETH.
• The Shanghai upgrade enabled the withdrawal of staked ethers and Lido DAO released its V2 update for holders of Lido’s stETH token to exchange it for ETH.
Ethereum Shifts from Proof-of-Work to Proof-of-Stake
The Ethereum (ETH) network is transitioning from a Proof-of-Work (PoW) consensus mechanism to a Proof-of-Stake (PoS) method, which significantly decentralizes the network. This allows any ETH investor to become a validator by staking 32 Ethers and earning passively.
Lido DAO Emerges as Top Player In Ethereum’s Liquid Staking Space
According to a recent report from Glassnode Insights, Lido’s stETH has emerged as the market preference for liquid staking since the Shanghai upgrade earlier this year. As of today, Lido ETH liquid staking program had total locked assets of $14 billion in stETH, which accounted for majority of its TVL. Other Lido staking programs include Polygon (MATIC), Solana (SOL), Polkadot (DOT), and Kusama network.
Shanghai Upgrade Enables Withdrawal Of Staked Ether
After the Shanghai upgrade, the Lido DAO network also upgraded its node operations to enable withdrawals of staked ethers. On May 15, Lido DAO released its V2 update enabling holders of Lido’s stETH token to exchange it for ETH. Following the update, an increase in Lido’sstETH was observed but didn’t reflect an uptick in new token holders thus concluding deposits are from existing investors. The value of LDO token had dropped approximately 10 percent in last 24 hours trading around $1.91 on Friday.
High Yields & Fast Withdrawals Through Liquid Staking Programs Like LIDO
Liquid Staking programs like LIDO offers small scale investors high yields with fast withdrawals via STETH . It simplifies economics of network validators by eliminating hustle related with purchasing complete mining rig or investing in mining pool rig and frequently updating their mining hash rate power as difficulty increases . The game is further rigged for small scale investors through such liquidstaking programs .