- Lido's market share reached a critical mass last year.
- LDO's bullish trajectory continued from last week.
Famous Ethereum [ETH] Defending Evan Van Ness' cheeky post about Lido Finance on social platform X (formerly Twitter) [LDO]the largest liquid staking protocol, gained some attention on March 25th.
inside story
Van Ness used the famous “How it started, how it progressed” meme to explain how Lido's ETH staking market share has grown from 32.37% in September 2023 to 32.37% at the time the post was made. drew attention to the drop to 30.36%.
AMBCrypto used data from Dune Analytics to cross-examine the claims and found them to be true. But why does it matter?
In September 2023, Evan Van Ness expressed concern about Lido's growing dominance in the ETH staking sector.
At the time, market share was approaching 33%. This is the limit on which a single entity can theoretically control the operations of the Ethereum network.
Without mincing words, he classified Lido as:
“The Biggest Attack on Ethereum’s Decentralization.”
No wonder he took such mischievous glee at seeing Lido's declining market share that he framed the aforementioned post in the same way.
Suspicion of centralization
Evan Van Ness wasn't the first to raise this red flag.Ethereum Foundation researcher Danny Ryan warned about lido centralization risks as far back as 2022
As we know, Lido Finance is the largest staking service provider on Ethereum, with approximately 9.57 million ETH deposited as of this writing.
By staking ETH through Lido, users not only earn yield from the network side, but also receive liquidity derivatives of locked ETH, which can be used in other decentralized finance (DeFi) activities. .
Its deposits increased last year after the Shappera upgrade, which allowed ETH withdrawals, was enabled. This contributed to increasing market share.
Source: Defilama
However, this dominance is being challenged to some extent with the entry of liquid restaking platforms like Ether.fi.
Whether it's realistic or not, the market cap of LDO converted to BTC is as follows:
Meanwhile, the platform's native token continues to rise, gaining 1.42% in the past 24 hours, according to CoinMarketCap.
This comes on the heels of last week's jump of 37%, the market's top weekly gainer.
