The increase in Ethereum holders has resulted in a dip in Lido’s market share, from 32% in December 2023 to 29.57% now. This reduction has addressed concerns about Lido’s dominant position in the environment.
Lido’s dominance in ETH staking, paired with low competition, enabled it to control a sizable chunk of the market. However, community concern emerged over the potential power of any business with more than 33% market share on the Ethereum chain.
According to Dune data, as of April 4, Lido’s staked ETH market share had slipped below 30%. Crypto exchanges like Coinbase and Binance, as well as Ethereum staking platform Kiln, play substantial roles in ETH staking, with percentages of 14.04% and 3.75%, respectively.
Surprisingly, an anonymous firm holds the second-largest proportion, with 16.9%. Kraken, Bitcoin Suisse, OKX, and Upbit are among the 26 identified entities, each contributing 1.1% to 2.4%. Vitalik Buterin, Ethereum’s co-founder, pushes for stake pools to limit their control at 15% and change fees accordingly to preserve this level.