Ethereum Inflow Surges: Liquid Staking Protocols Garner 680,000+ ETH in 28 Days
In under a month, despite cryptocurrency market fluctuations, more than 680,000 ethereum (ETH) have been integrated into liquid staking derivatives protocols.
The dominant platform, Lido Finance, has witnessed a 5.94% supply increase, elevating their holdings from 7.91 million to 8.38 million ETH since July 29. The cumulative liquid staking derivatives landscape observed a surge of over 680,000 ETH within the past 28 days. From 10.65 million ETH on July 29, the amount held in liquid staking applications has risen to around 11.33 million. Lido leads the pack with a 73.98% market share, boasting 8.38 million ETH staked following the nearly 6% increase.
Among the influx of over 680,000 ETH in the past month, Lido saw around 470,000 ETH added. Coinbase’s liquid staking derivative product held about 1.17 million ETH on July 29, now standing at around 1.22 million. Rocket Pool also grew from approximately 857,967 ETH to about 901,072 ETH. Lido, Coinbase, and Rocket Pool are the frontrunners, followed by Frax Ether (approximately 254,692 ETH) and Eigenlayer’s liquid staking platform (roughly 100,025 ETH).
Liquid staking protocols offer several advantages, including simplified setup and management of validator nodes and reduced risks of penalties or errors due to mismanagement. Moreover, liquid staking provides immediate liquidity through staked tokens, catering to users seeking accessible participation. Despite these benefits, liquid staking tokens entail risks, primarily associated with de-pegging when locked tokens and derivatives have differing values. While liquid staking’s appeal persists, it currently constitutes 9.42% of the circulating ethereum supply, totaling 11.33 million out of the 120.21 million ethereum in circulation.
Clever Robot News Desk 28th August 2023