In its latest analysis, data analytics platform IntoTheBlock noted that the liquid staking market within the Ethereum ecosystem continues to grow with new entrants and a booming user base.
The report stated that the liquid staking tokens (LST) market has developed into a key part of the cryptocurrency market. As of November 2023, IntoTheBlock said approximately $20 billion is being staked via Ethereum LSTs.
According to the report, Lido’s stETH remains the leading liquid token despite growing competition within the space. The report mentioned that the Ethereum Shapella upgrade, which introduced staking withdrawals in April 2023, aided the competitive boom in the liquid staking landscape.
Before the upgrade, IntoTheBlock noted that Lido held over 90% of the liquid staking token market share. However, since then, new entrants have seized around 15% of the market share, driven by increased investors’ confidence in the market.
Per the report, there is an astounding $18.3 billion staked through Lido’s stETH. In addition, the protocol has the most holders in the market, with an astonishing 238.6k unique addresses holding the token.
Along the same line, IntoTheBlock noted the growth of the LST protocol Rocket Pool’s rETH token. The analysis stated that the token is the second-largest LST token in the market, driven by its strong commitment to decentralization.
Furthermore, the report ankrETH has also seen a considerable boost in its user base. Notably, the token, which ranks second to stETH in holders, has over 14.9k holders. However, the report said a substantial gap still exists between the two top tokens.
Meanwhile, the report noted that large whale concentrations within the LDO token, which is Lido’s governance token. In particular, Lido’s whale concentration has declined by more than 10% over the past year. At present, 56.4% of the tokens staked on the platform are controlled by whale investors.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Read the full article here