Lido Finance, the biggest liquid staking platform on Ethereum, just hit a major milestone: one million Ethereum validators. This makes Lido Finance the largest decentralized finance (DeFi) protocol around.
Liquid staking, which Lido Finance specializes in, has been a game-changer. It’s made staking more doable for regular users who don’t have tons of money to invest. See, normally, to run your own validator node on Ethereum, you’d need a whopping 32 Ether (ETH). But with platforms like Lido Finance, even folks with limited cash can get in on the action.
Here’s the thing: Lido Finance isn’t just big – it’s massive. It controls a whopping 28.5% of all staked Ether out there. That’s a pretty hefty chunk. For comparison, the Coinbase exchange handles around 13.6% of staked Ether. Overall, stalkers currently hold more than a quarter of all Ether in circulation.
So, why is liquid staking such a big deal? Well, it’s all about making things easier for users. When you stake your Ether with Lido, you get back something called Lido Staked ETH (stETH). And here’s the kicker: you can use stETH in other DeFi projects. That’s a big deal because, with regular staking, your tokens would be tied up and you couldn’t do much with them.
Liquid staking is powering the growth of DeFi
And the impact of liquid staking isn’t just limited to Lido Finance. It’s fueling the whole rise of DeFi. Check this out: the total value locked (TVL) in DeFi protocols has skyrocketed from $36 billion in late 2023 to a peak of $97 billion in early 2024. That’s some serious growth! And a big chunk of that growth is thanks to platforms like Lido Finance.
Liquid staking protocols have racked up over $47.7 billion in total TVL. And guess what? Lido Finance is leading the pack with a whopping $29.9 billion in TVL. That’s more than any other platform out there.
When you look at DeFi as a whole, liquid staking protocol are still on top. They’ve got a combined TVL of $47.6 billion across 164 different protocols. Lending comes in second with $30.7 billion, followed by cross-chain bridges with $21.8 billion.
Now, it’s not all sunshine and rainbows. Some big names in the crypto world have raised concerns about Lido’s growing dominance. Ethereum co-founder Vitalik Buterin, for example, has pointed out the risks of centralization with platforms like Lido. See, if one platform controls too much of the market, it could be a problem. But Lido Finance has put safeguards in place to prevent that from happening. Still, it’s something to keep an eye on.
In the end, Lido Finance’s milestone is a big deal – not just for them, but for the whole world of DeFi. It’s a sign of how far things have come, and a reminder of the potential that lies ahead.
Disclaimer
FAQ
Lido Finance is a leading decentralized finance (DeFi) protocol specializing in liquid staking on the Ethereum blockchain. It allows users to stake their Ether with as little capital as possible.
Lido Finance has significantly contributed to the DeFi sector by enabling wider participation through liquid staking, where users receive stETH in return, usable in other DeFi projects.
Achieving 1 million validators makes Lido Finance the largest DeFi staking platform, controlling over 28.5% of all staked Ether, indicating strong trust and widespread adoption in the cryptocurrency community.
