Ethereum price has fallen over 4% in the past 30 days, but ETH holders have pivoted from Lido Finance to restaking the protocol.
Over the past month, Lido Finance had the highest amount of Ethereum (ETH) outflows among similar protocols, according to the Dune Analytics dashboard that tracks staking activity.
A page created by researcher Hildby shows that stakers have withdrawn over 284,800 ETH from Lido's platform. Nevertheless, Lido gained his 29.7% market share and maintained his dominance in the Ethereum staking space.
On-chain data reveals that ETH stakers are flocking to Liquid re-staking protocols. Lido recorded the largest monthly outflow, while Ether was. fi and Renzo protocols attracted the highest inflows of over 400,000 and 280,100 ethers, respectively.
According to DefiLlama, Ether.fi and Renzo are the two largest liquid re-staking platforms available. Ether.fi boasts a total value locked (TVL) of $3.1 billion, and traders have invested more than $2.1 billion with Renzo. Users have locked over $8 billion of his money into these protocols.
Ethereum stakers stake Eigenlayer points
The shift from Lido to liquid stakers like Ether.fi and Renzo highlights defi participants' interest in Eigenlayer points. The Liquid restake protocol piggybacks on Eigenlayer's platform to allow a staker to use her ETH to secure other networks and solutions.
This practice stems from staking, a feature of Ethereum's blockchain following the September 2022 merger, which saw the switch from a proof-of-work consensus mechanism to proof-of-stake. Under the new paradigm, stakers replaced miners as the main guardians of the Ethereum chain by locking up ETH with validators that bootstrap security.
Eigenlayer has extended this effort by repurposing staked ETH into a broader basket of protocols and chains tied to Ethereum. The protocol awards points to participants, and a major paper suggests that these points could be converted into token airdrops in the future.
