Ethereum

DeFi

Lido Staked ETH

April

Shiba Inu

Lido Finance, the premier decentralized finance (DeFi) protocol for liquid staking on Ethereum, has celebrated a significant milestone, reaching one million Ethereum validators.
This achievement was announced through an April 29th post on X, underscoring Lido Finance’s position as a leader in the DeFi space.
Liquid staking protocols such as Lido Finance play a crucial role in democratizing staking for retail users with limited capital.
Typically, individuals would require 32 Ether to operate their own validator nodes on Ethereum.
However, Lido Finance offers an alternative avenue, making staking accessible to a broader audience.
According to data from Dune, Lido Finance commands a substantial portion, 28.5%, of staked Ether, with an additional 13.6% staked through the Coinbase exchange.
Presently, over 27% of the entire Ether supply is engaged in staking activities.
The appeal of liquid staking protocols like Lido lies in the liquidity benefits they provide.
Users who participate in staking through Lido receive Lido Staked ETH (stETH) in return, which can be utilized in various other DeFi protocols.
This stands in contrast to traditional staking methods, where staked Ether remains locked and inaccessible for the duration of the staking period.
READ MORE: <a href="https://www.cryptointelligence.co.uk/shiba-inu-prepares-for-shibarium-network-overhaul-with-may-2nd-hard-fork/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Shiba Inu Prepares for Shibarium Network Overhaul with May 2nd Hard Fork</a>
The rise of liquid staking is significantly contributing to the growth of DeFi.
Total value locked (TVL) in DeFi protocols has experienced a substantial surge, reaching $97 billion in the first quarter of 2024 from a low of $36 billion in the fourth quarter of 2023.
Current TVL stands at $92.32 billion, according to DefiLlama.
This growth, which saw a 65.6% increase quarter-on-quarter, can be primarily attributed to liquid staking protocols like Lido, as noted by on-chain intelligence provider Messari.
The cumulative TVL amassed by liquid staking protocols exceeds $47.7 billion, with Lido alone accounting for over $29.9 billion.
Despite its success, concerns have been raised about Lido’s growing dominance within the ecosystem. Ethereum co-founder <a href="https://www.forbes.com/profile/vitalik-buterin/" data-wpel-link="exclude" rel="noopener noreferrer nofollow">Vitalik Buterin</a> has previously expressed apprehensions regarding potential centralization risks associated with Lido.
In a blog post dating back to September 2023, Buterin highlighted the need for vigilance against such risks, acknowledging the efforts made by protocols like Lido in implementing safeguards while cautioning that one layer of defense may not suffice.
To submit a <a href="https://www.cryptointelligence.co.uk/category/press-releases/" data-wpel-link="internal" rel="noopener noreferrer nofollow">crypto press release (PR)</a>, send an email to <a href="mailto:sales@cryptointelligence.co.uk" rel="noopener noreferrer nofollow">sales@cryptointelligence.co.uk</a>.

Lido Finance Surpasses One Million Ethereum Validators, Cementing its DeFi Dominance

Crypto Intelligence

Other articles published on May 5, 2024

Crypto.com Accelerates Advertising with Grand Prix Sponsorships

Walmart-Endorsed Ibotta’s Stocks Skyrocket During Public Launch

Expert Low-Cost Crypto Investment Plan for May – Turning $500 into $25,000

ORDI Dips Below Key Support: Can the Token Rebound Soon? PENDLE Poised for Bullish Breakthrough A...

Grayscale Spot Bitcoin ETF Turns Positive After $17.5 Billion In Outflows, Sees Inflows For The F...

Regency Centers (REG) Outperforms Q1 FFO Estimates, Revises 2024 Financial Outlook

Join our free newsletter for daily crypto updates!