04 Apr

The Ethereum staking platform Kiln (3.5%) and the cryptocurrency exchanges Coinbase (14.04%) and Binance (3.75%) are other well-known organizations supporting the ETH staking ecosystem.

Lido's market share dropped from 32% in December 2023 to 29.57% due to the recent flood of Ether stakers, allaying worries about Lido's increasing impact on the ecosystem. Due to the lack of competition in the ETH staking market and Lido's popularity, the platform has been able to capture the majority of the market.

The community was concerned about any organization controlling more than 33% of the market having the ability to affect different Ethereum blockchain features. Lido's market share for staked ETH fell below 30% as of April 4, according to statistics from the crypto analytics portal Dune. 

Kiln (3.5%), an Ethereum staking platform, and Coinbase (14.04%) and Binance (3.75%) are two more notable organizations supporting the ETH staking ecosystem.

A total of 26 businesses are known to be involved in ETH staking, including the cryptocurrency exchanges Kraken (2.4%), Upbit (1.1%), OKX (1.2%), and Bitcoin Suisse (1.6%). 

Vitalik Buterin, a co-founder of Ethereum, believes that stake pools ought to have no more influence than 15% and ought to decide to “keep increasing its fee rate until it goes back below 15%.”

In May 2022, the Lido decentralized autonomous organization (DAO) community proposed a hard restriction in an attempt to address the ETH staking dominance problem. But in June 2022, the DAO voted 99.81% against the idea. The staking environment is predicted to become even more decentralized as a result of growing competition among ETH staking service providers.

The experts stated, "While this (restaking) can increase earnings, it can also compound risks," using Eigenlayer, an Ethereum restaking protocol, as an example. 

This is because restaking distributes the same assets to similar validators for increased yield. In order to increase their market share, LRTs may be motivated to maximize their yields, but doing so may come at the expense of a higher (but concealed) risk profile, they continued.

April 2024, Cryptoniteuae

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