After the activation of the Shanghai update in the Ethereum network, the influx of coins to LSD protocols, led by Lido Finance, increased in the ecosystem. Glassnode analysts write about this.
The hard fork opened the possibility of withdrawing coins locked in staking. Instead of an outflow of Ethereum, a new wave of receipts for a deposit contract appeared from more conservative investors. Its peak was on June 2 (13,595 tributaries). In June, an average of 2,627 deposits were observed per day, experts calculated.
For comparison, the inflow to CEX is 28,000-32,000, which is comparable to the values before the activation of Shanghai. At its peak, the figure jumped to 95,000.
The wave of Ethereum staking (highlighted in blue) is best tracked by accumulated values. In the illustration below, you can see how the metric compares to or exceeds the flow of coins to exchanges (highlighted in red).
Upon closer examination, analysts recorded a preference for LSD protocols and, first of all, Lido Finance.
After updating Lido Finance to the second version, node operators were able to withdraw blocked ETH. On this day TVL the project sank by 400,819 stETH (~$721 million). However, a new wave of deposits followed, which brought the indicator up to a new level. ATH at 7.49 million stETH.
In this regard, Lido Finance outperforms its nearest competitor by 16 times. Experts noted that since the beginning of the year, the growth rate of rETH from Rocket Pool has been three times higher than the dynamics of stETH.
Increasing the number of “ethers” in liquid staking does not lead to an increase in the number of their holders. This is typical only for Rocket Pool and Frax Finance, while it is not observed in Lido Finance. The daily number of new addresses with stETH fluctuates between 230-590, which corresponds to the values of the beginning of the year.
“This leads us to conclude that many new deposits through Lido are driven by increased leverage by current stETH holders,” experts noted.
The previously mentioned conclusion is confirmed by the dynamics of the average balance of token holders. After the update, the figure dropped to 46,100 stETH (~$83,000), but later returned to 51,000 stETH (~$100,000).
“A notable influx of new owners entering the market through these liquid staking mechanisms is yet to be seen.” experts stressed.
In the context of DeFi among LSD token holders, analysts have recorded a decline in the popularity of DEX in favor of landing platforms where they are used as collateral. According to them, this allows you to maximize the return on assets by increasing leverage up to 3x.
In particular, the TVL of wstETH in Aave V3 has exceeded $734.9 million since its launch at the end of January 2023. The stETH pool in Aave V2 reached $1.79 billion.
Recall that the share of the cryptocurrency exchange Coinbase in the Ethereum staking market has decreased against the backdrop of pressure from US regulators, according to Dune Analytics.
Previously, the Gemini platform expanded the Staking Pro program for wealthy clients to the UK.
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