All about Lido Finance, what the Shanghai upgrade can do, and the threat it faces

• Lido’s share of the ETH staking market now sits at 29%
• The APR supplied witnessed a decline as properly.

Lido Finance [Lido] commenced the 2023 buying and selling yr with a slight decline in its market share within the ETH staking ecosystem. The leading liquid Ethereum [ETH] staking platform’s efficiency was highlighted by Dune Analytics. 

Learn Lido Finance’s [LDO] Value Prediction 2023-2024

Who sits the staking throne?

With continued development within the variety of choices accessible to market gamers to stake their Ether, Lido’s place as a frontrunner stays regularly threatened. In response to Dune Analytics, after Lido’s share of complete ETH staked touched 30%, it held on to the determine between September and early December.

Nonetheless, this slipped additional to the touch 29% for the primary time since April 2022. Moreover, on the time of writing, Lido’s market share of complete ETH staked stood at 29.07%.

Supply: Dune Analytics

Per information from the on-chain analytics platform, Lido’s share of the ETH staking market constantly declined since Might 2022. Moreover, this could possibly be attributed to a surge within the variety of ETH staking platforms because the merge drew nearer. 

In response to information from Staking Rewards, an evaluation of the assorted means by way of which ETH could possibly be staked revealed that many stakers most popular to stake through cryptocurrency exchanges. 

What number of LDOs are you able to get for $1?

Of the assorted ETH staking modes, the staking ratio for trade staking stood at 29.59%, the best available in the market. It was additionally properly positioned above Lido’s liquid staking ratio of 27.4%.

The elevated choice to stake ETH on exchanges was additionally a contributory issue to the gradual decline in Lido’s maintain in the marketplace.

Supply: Staking Rewards

Moreover, the Annual share charge (APR) earned for staking through Lido clinched its lowest level since November at press time. On the time of writing, Lido supplied an APR of 4.30%.

This represented a 58% decline from its APR all-time excessive, which was recorded three months in the past. The persistent decline in APR could possibly be a cause why Lido’s maintain in the marketplace has been slipping.

Supply: Dune Analytics

The place does LDO stand in the long term?

The explanation for the persistent drop in Lido’s APR wasn’t far-fetched. This was attributable to low exercise on the Ethereum community. Low exercise led to diminished Execution Layer rewards, information from Dune Analytics confirmed. 

As of this writing, Execution Layer rewards on Ethereum stood at 0.9%. As of 13 November, this was pegged at 11.3%. 

With elevated ETH staking forward of the Shanghai Replace scheduled for later this yr, it stays to be seen what’s to develop into of Lido Finance and its place available in the market.

Supply: Glassnode