While a rise in ETH is expected, the Ethereum blockchain is experiencing marked progress with impressive figures. Liquid staking is now established in the Ethereum ecosystem, where nearly 14.14 million ETH are locked there. Through the rise of protocols such as Lido and Binance, this staking model is attracting attention. This centralization, while beneficial for liquidity, also raises fundamental questions about the security and decentralization of the Ethereum network.
More than 14 million crypto ETH blocked: liquid staking explodes!
Liquid Ethereum staking continues to capture user interest, today representing 11.74% of the total 120.4 million ETH in circulation. This rapid growth makes it climb the number of ETH put in liquid staking at 14.14 millionwell beyond the shares managed by ether ETFs, which are limited to 2.28%.
Several platforms share this thriving market, where Lido Finance holds nearly 68.97% with its 9.75 million ETH staked, followed by Binance, which, in three months, went from 1.42 to 1.52 million ETH staked. The top 5 is completed by Rocket Pool, Mantle and Coinbase, alone representing around 93.09% of ETH in liquid staking.
- Lido: 68.97% of the market;
- Binance: 1.52 million ETH;
- Rocket Pool: 1.23 million ETH;
- Mantle: 480,629 ETH;
- Coinbase: 182,430 ETH.
These figures underline the predominance of a few major players in liquid stakingwhich, despite undeniable advantages in terms of liquidity, accentuates risks for Ethereum decentralization.
Liquid Staking Ethereum: security issues and centralization
The rise of these players is not without concern for the Ethereum community. Vitalik Buterin, co-founder of Ethereum, expressed his reservations, particularly on the security of assets placed in staking due to the risks of online access to private keys. The increased power of large platforms like Lido and Binance could compromise the integrity of the network, a concern he raised in his “Scourge” project.
Buterin emphasizes that this model could tip Ethereum towards a concentration of powercontrary to the decentralization values of crypto. He compares this trend to the control mechanisms of traditional financial systems, warning against a loss of influence of individual validators.
“ We must ensure that the network remains decentralized to ensure its resilience and security “, he warned, pointing out the risk that these players become too important in the Ethereum ecosystem.
Furthermore, liquid staking represents a growth lever for Ethereum crypto, allowing assets to be staked while retaining the possibility of using them for other operations.
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