Lido has reported a significant increase in staked Ethereum on its platform despite facing challenges from the US Securities and Exchange Commission. In a recent report, Lido users staked an additional 95,616 ETH between June 24 and July 1, bringing the total value of assets staked on the platform to $33.48 billion. This increase of 1.26% has solidified Lido’s position as a leading platform for Ethereum staking, surpassing centralized exchanges like Binance and Gate.io.
One of the key factors contributing to Lido’s success is the significant activity in its wrapped staked ETH (wstETH) on Layer 2 networks such as Scroll, Base, Arbitrum, and Optimism. The total number of assets on these blockchains has increased by 7.19% to 141,586, with a 7-day trading volume of $1.23 billion. Despite a slight decrease in the Annual Percentage Rate (APR) for staked ETH, dropping to 2.96%, Lido continues to attract interest from investors looking to capitalize on the potential of Ethereum staking.
In an effort to enhance decentralization, Lido has introduced a Community Staking Module (CSM) that aims to promote more decentralized Ethereum node operations. This new module will integrate a diverse range of Node Operators, including solo stakers, into the network, allowing for permissionless entry for node operators. The ultimate goal of the CSM is to increase the total number of independent Node Operators in the overall Ethereum network, marking a clear departure from Lido’s previous approach that required approval from its DAO for new node operators.
The CSM is currently in early adoption mode on the Holesky testnet and is expected to transition to a permissionless state on July 11, 2024. This initiative will make solo staking more attractive and accessible for interest validators by introducing a reasonably low bond for Node Operators and requiring no secondary token collateral. By democratizing access to Ethereum node operations, Lido is paving the way for a more decentralized and inclusive staking ecosystem.
Overall, Lido’s continued growth in staked Ethereum and its commitment to decentralization through initiatives like the Community Staking Module demonstrate its resilience in the face of regulatory challenges. As the platform continues to innovate and expand its offerings, it remains a frontrunner in the Ethereum staking space, attracting investors and node operators alike. With a focus on security, transparency, and accessibility, Lido is poised to play a pivotal role in the future of decentralized finance.
