Lido (LDO) has started Ethereum (ETH) staking on the L2 platform zkSync on January 17, aiming to expand liquidity and utility. This move not only signifies Lido’s commitment to growth in the Ethereum staking environment but also addresses concerns about its dominance in the platform.
Data analysis from Dune Analytics shows a significant increase in the total staked Ethereum, reaching approximately 29 million, now constituting over 24% of the total supply. Despite the recent Shanghai update allowing ETH withdrawals, the total staked amount continues to rise.
Lido holds over 32% of the staked ETH, dominating the field with more than 9 million ETH, outpacing its competitors.
Although Lido’s dominance in staking is clear, recent scrutiny of new Ethereum deposits has revealed a noticeable decline in volumes, with figures showing around 62,000 ETH at the time of writing.
The price of the Lido cryptocurrency has fluctuated, rising from around $2 on December 20 to $4.02 on January 11, followed by a subsequent drop. Currently, Lido’s price is around $3.02, a roughly 5% decrease, and continuous declines could potentially lead to an exit from the bullish zone.
While Lido is positioning itself for more liquidity and utility by expanding staked ETH to zkSync, challenges from decreasing new deposits and fluctuating price trends highlight the need for strategic adaptability in a dynamic market. Investors and crypto enthusiasts will closely monitor how Lido navigates these challenges and shapes its trajectory in the coming weeks.
