On-Chain data analytic platform Glassnode reported the current status of the Ethereum staking ecosystem.According to the latest tweet, deposit activity is at low levels due to regularity pressure and Shanghai update.
Notably, the data suggested loss of market share of major crypto exchanges such as Coinbase, Binance, and Kraken to liquid staking platform Lido.
Significantly, a drop in staking activity is mostly due to two reasons. Primarily the US regulatory insists that Ethereum is an asset and has cracked down on staking despite no official legislation from Congress classifying ETH as such security.
Another reason is the long -awaited Shapella hard fork, also known as the Shanghai hard fork that would enable the phased release of ETH staked on the Beacon Chain.
As per Glassnode, Lido accounts for nearly a third of the total numbers of staked ETH. This amounts to nearly $11 billion from the 5.9 million ETH on the platform. Presumably, the Lido DAO ( LDO) liquid staking program is getting more popular among Ethereum investors.
Interestingly, Lido took minimal 10% commission as compared to Coinbase with a 25% commission. That is why the shift over time as stakers moved to more profitable platforms like Lido.
