Lido Finance Hits 1 Million Validators, Fuels DeFi Growth

As a seasoned crypto investor with a deep understanding of the Ethereum network and decentralized finance (DeFi) ecosystem, I’m genuinely impressed by Lido Finance’s recent achievement of reaching one million validators. This milestone speaks volumes about the platform’s growing popularity and its significance in making staking more accessible to a broader audience.

On April 29, Lido Finance, Ethereum‘s prominent liquid staking platform, achieved a significant accomplishment as it surpassed the threshold of one million active validators.

As a researcher studying decentralized finance, I’d express it this way: I’ve noticed that participating in staking on Ethereum requires a significant investment of 32 Ether, which amounts to approximately $3,178. However, Lido Finance has found a solution for those with limited funds. Through their platform, users can now effortlessly engage in staking without the need to manage their own validator nodes.

1 million validators

— Lido (@LidoFinance) April 29, 2024

At present, approximately 28.5% of the total staked Ether is managed by Lido Finance, and an additional 13.6% is handled by Coinbase. Combined, more than a quarter (27%) of all Ether is currently being secured through these two platforms.

The surge of liquid staking platforms such as Lido has been truly impressive. Unlike conventional staking, these protocols grant users additional liquidity advantages. By depositing Ether with Lido, you receive stETH (Lido-staked ETH) in lieu of your tokens being locked up and inaccessible in traditional staking scenarios. Instead, you can utilize stETH within various decentralized finance (DeFi) applications.

The amount of assets secured in Decentralized Finance (DeFi) platforms has experienced a significant surge. It dipped to a minimum of $36 billion towards the end of 2023, but subsequently peaked at an impressive high of $97 billion during the early months of 2024. At present, it hovers around $92.32 billion.

Based on Messari’s analysis, the significant surge in Decentralized Finance (DeFi) Total Value Locked (TVL), which has risen by approximately 65.6% from one quarter to another, can primarily be attributed to rising asset prices and the increasing popularity of liquid reaping, particularly within Ethereum’s ecosystem. Ethereum’s TVL is approaching a nearly 71% increase.

In total, the value locked in liquid staking protocols amounts to over $47.7 billion, of which $29.9 billion is attributed to Lido. Rocket Pool follows closely with a locked-in value of $3.86 billion. This category leads DeFi with a combined TVL ($47.6 billion) from 164 distinct protocols.

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2024-04-29 14:45