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Lido Faces Three-Year Low in Ethereum Staking Market Amidst stETH Depeg Turmoil
Lido’s once-dominant position in the Ethereum staking market has plummeted to a three-year low, with its share falling to 25%. This precipitous decline coincides with a prolonged depegging of stETH, Lido’s liquid staking token. Data from Dune Analytics reveals that Lido’s staked ETH volume has decreased by 5% over the past six months, marking the lowest market share since March 2022.
This dramatic downturn is accompanied by an unprecedented surge in withdrawal requests from users, with over 235,000 stETH pending exit. The sudden increase in withdrawals follows significant exits from prominent players such as Justin Sun and investment firms like Abraxas Capital, along with staking platforms including Ether.fi. Notwithstanding its diminished market presence, Lido still remains the largest Ethereum staking provider, controlling an enormous 9 million ETH.
The company’s withdrawal queue is now at an all-time high since withdrawal functionality was enabled, fueled by massive withdrawals from a few prominent players.
Source: cryptoslate.com
