Search
Search

Ethereum’s LSDFi sector has surged nearly 60x post-Shapella since January

0
0

234 Listen to this article The Ethereum-based Liquid Staking Derivatives Finance (LSDFi) sector is witnessing a meteoric rise, growing nearly […]

Latest News

Listen to this article

The Ethereum-based Liquid Staking Derivatives Finance (LSDFi) sector is witnessing a meteoric rise, growing nearly 60-fold since January, in the aftermath of the Shapella upgrade, according to data from crypto analytics firm CoinGecko.

Despite the Shapella upgrade in April 2023 enabling ETH withdrawals, Ether holders are increasingly opting to stake their assets rather than selling. CoinGecko’s report, published on October 16, highlights a staggering 58.7x growth in the LSDFi sector since the start of the year.

By August 2023, LSDFi protocols represented a significant 43.7% of the 26.4 million total staked ETH, with Lido dominating the space, accounting for nearly one-third of the overall staked market.

This booming sector underscores a preference among ETH holders to re-stake their assets in pursuit of higher yields instead of liquidating. Remarkably, since enabling withdrawals, the exit queue has remained empty 55% of the time and below ten validators for 77% of the time, emphasizing the strong commitment to staking.

LSDFi’s emergence aimed to allow smaller ETH holders to stake and access liquidity following Ethereum’s Beacon Chain initiation in December 2020. The total value locked (TVL) in the top ten LSDFi protocols, excluding Lido, has skyrocketed, exceeding $900 million this year.

The sector has seen a 5,870% increase in TVL since January 2023, whereas, in contrast, the overall decentralized finance (DeFi) TVL has shrunk by approximately 8% during the same timeframe, as per data from DefiLlama.

Read Also:  Market News: Ledger's Latest White Paper Introduces Revolutionary Secure Recovery Service for Crypto Investors

LSDFi protocols have offered an average yield of 4.4% since January 2022, though expectations are set for this to decrease with the growing volume of staked ETH. Currently, the staked ETH stands at 27.6 million, approximated at a whopping $43.4 billion, as per Beaconcha.in.

The recent weeks have seen the Ethereum community excitedly tracking the ascent of LSDFi platform Diva, purportedly initiating a “vampire attack” on Lido by offering enhanced incentives and thereby drawing users and liquidity. Diva’s approach provides token rewards for stakers who commit their ETH and Lido’s staked ETH (stETH) for Diva’s divETH. Impressively, Diva’s TVL has experienced a 650% upsurge since early October, reaching 15,386 stETH, equivalent to about $24 million.

Readers interested in this pivotal juncture in crypto history can own a piece of it by collecting this article as a non-fungible token (NFT), demonstrating support for independent crypto journalism.

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Get Latest Updates

Latest News

Web Stories

Latest News

0
Would love your thoughts, please comment.x
()
x
Scroll to Top
Bitcoin ETFs Surge as Investors Seek Exposure Coinbase, Andreessen Horowitz, and Ripple have joined forces to fund a new crypto DMM Bitcoin Hit by $305M Hack Ripple Releases 1 Billion XRP Tokens What to Expect from Bitcoin’s Price Rally in H2 2024 Trump’s MAGA Coin Soars 7% While Biden Parody Sinks Amid Ex-President’s Trial — NFTs Hold Steady Analyst Warns About Dogecoin Decline CME Denies Solana Futures Plans Amid Growing Rumors Can PEPE flip Polygon? Market cap race heats up! Why Bitcoin Price Is Down Today? Cristiano Ronaldo Launches 4th NFT Collection on Binance Amid $1B Lawsuit Coinbase Alleges SEC Dodging Howey Test in New Appeal Ethereum ETFs Granted Official Approval by SEC Crypto Whale Splurges $10.4 Million on Meme Coin PEPE SOL Price Nearing Support as On-Chain Activity Dips for Solana Penguiana Meme Coin’s Presale Achieves Success, Raising 290 SOL Solana to Bitcoin Bridge, Zeus Network, Set for Debut in Q3 2024 DeFi Lending Leader Aave Unveils V4 Protocol Overhaul MicroStrategy (MSTR) Incurs Losses in Q1 After Digital Asset Impairment Takes Toll Upbit Emerges as Top Five Crypto Exchange, Posing Challenge to Binance, Coinbase