Journalist
Posted:
- The ETH stake was over 28 million at the time of writing.
- Similarly, the ETH stake through Lido exceeded 8 million.
Ethereum [ETH] strike has seen a consistent rise in participation since its inception. With the increasing popularity of ETH staking, Lido’s [LDO] The share of the strike market has also expanded, which raises certain concerns.
Read Ethereum’s [ETH] Price Forecast 2023-24
Ethereum strike and Lido’s dominance continue to rise
According to Ethereum’s staking chart on CryptoQuant, the press time amount of ETH staked exceeded 28 million. Particularly noticeable on the chart was the significant increase in stakes in Ethereum, with this upward trend becoming apparent around April.
Additionally, data from Dune Analytics indicated that total ETH staked made up approximately 22% of total ETH in circulation.
Source: CryptoQuant
However, the most intriguing aspect emerged when examining the percentage of ETH wagered through Lido. According to Dune AnalyticsLido held 32.4% of the total ETH stake, amounting to over 8 million ETH.
For comparison, at the time of writing, the nearest competing platform had about 2 million ETH staked.
Given Lido’s pronounced dominance in the Ethereum staking landscape, concerns have recently arisen over the centralization of the Ethereum network.
Lido’s dominance over Ethereum is a cause for concern
Ryan Berkmans has expressed concern that Lido’s increasing dominance may lead to Ethereum being seen as a centralized platform.
Berckmans warned that this increasing centralization could potentially damage Ethereum’s reputation, especially in the eyes of businesses and governments, and undermine its ambitions to become a globally recognized settlement layer within the financial system.
In my view, the realistic worst-case scenario for Lido’s unrestricted dominance is not network disruption.
It’s that Ethereum is developing a reputation among companies and governments as being “captured” or “actually not that decentralized compared to other chains.”
If this were…
— Ryan Berckmans ryanb.eth🦇🔊 (@ryanberckmans) September 1, 2023
Such a perception could negatively impact Ethereum, which has gained popularity due to the multitude of decentralized applications (dApps) hosted on the network.
LDO not so dominant
A survey of Lido on a daily timetable showed that it was not as dominant as its stock. At the time of writing, LDO was trading at around USD 1.5, with a modest price increase of over 1%.
How much are 1,10,100 LDOs worth today?
In the days leading up to the observed trading session, the LDO had fallen for five consecutive days.
Source: TradingView
The bearish trend was further confirmed by the positioning of the long and short moving averages (yellow and blue lines). The price was below the yellow line acting as a resistance level between USD 1.8 and USD 1.9.