Ethereum Stakers Ditch Lido, Flock to Ether fi

In the last 30 days, Ethereum is down by 4%. Notwithstanding this, ETH holders demonstrate a tendency for liquid restaking protocols to be preferred over the likes of the traditional platform of Lido Finance. The data collected by the Dune Analytics dashboard, developed by researcher Hildobby, points to a substantial change. It shows that Lido Finance has the biggest outflow of Ethereum (ETH) regarding other peers withdrawing more than 284,800 ETH.

Lido, however, remains the leader in the Ethereum staking market, with a share of 29.7%. The flow of stakers is in the direction of platforms with liquid restaking options. These, among others, include Ether fi and Renzo Protocol, which received an impressive amount of inflows. Ether fi and Renzo have received over 400,000 and 280,100 Ether, respectively, making them the preferred platforms for stakers.

Ethereum Stakers Prefer Eigenlayer’s Flexible Solutions

Ether fi and Renzo are currently the largest liquid restaking platforms identified by DefiLlama. Fi’s total value locked (TVL) is $3.1 billion. At the same time, the investments in Renzo exceeded $2.1 billion. In total, users have locked over $8 billion in these protocols. This tendency shows a certain dominance of platforms that use mutually exclusive capabilities of Eigenlayer, thus providing for wider staking opportunities.

Moving from Lido to Ether fi and Renzo is a characteristic of the increasing popularity of Eigenlayer points among the participants of DeFi. These liquid restaking protocols use the Eigenlayer framework to allow stakers of their ETH to assist other networks and solutions. This approach came into favor when the Ethereum blockchain changed its consensus mechanism to proof-of-stake in September 2022.

Eigenlayer Expands Use of Staked ETH Widely

With the transition of Ethereum to proof-of-stake, the staking practice was revolutionized. Stakers are involved in securing the Ethereum chain by depositing the ETH with validators. Eigenlayer has evolved this model by enabling the staked ETH to be employed across a larger range of protocols and chains that are interconnected with Ethereum.

Read Also: ProShares Introduces First Bitcoin ETF To Target 2x Daily BTC Return