Liquid Staking Protocols See Uptick in ETH Deposits Despite Withdrawals Post-Shapella Hard Fork – Defi Bitcoin News


Following the Shapella hard fork on April 12, 2023, around 332,368 ether, valued at roughly $699 million, have been withdrawn. Despite these withdrawals, liquid staking protocols such as Lido, Rocketpool, and others have seen an increase in ether deposits in the past 30 days. Since March 14, a total of 281,498 ether worth $592 million have been added to these protocols.

TVL in Staked Ether Accounts for Over 30% of Defi’s Locked Value, With Lido in the Lead

As of April 15, 2023, there’s $53.68 billion total value locked (TVL) across various decentralized finance (defi) protocols. About $16.96 billion or 31% of today’s defi TVL is in staked ether. Lido’s TVL stands at approximately $12.74 billion, representing 23.74% of defi’s locked value. The rising cost of ethereum (ETH), above the $2,100 per unit range, along with deposits into ETH-based liquid staking protocols have contributed to an increase in value for these platforms.

For instance, Lido’s TVL has grown by 18.02% over the past 30 days; Coinbase’s liquid staking protocol has risen by 16.51% within the same period. Rocketpool’s TVL has surged by 22.48%, while Stakewise has expanded by 15.83%. Archive data from March 14, 2023, shows that 7,749,372 ETH were locked in liquid staking platforms; as of April 15, that number is up to 8,030,870 ETH – an addition of 281,498 ether in just one month.

At the same time, since the Shapella hard fork integration, a total of 332,368 ether has been withdrawn from the validator queue. Current pending withdrawals account for about 1.48 million ether worth of funds. The annual percentage rate (APR) for staking ETH currently sits at around 4.98% today. Presently, the Beacon chain contract holds 18,386,887 ETH, valued at $38.67 billion.

Around 81% of ETH validators have updated their withdrawal addresses, while 18.5% have not, according to Nansen data. The three entities with the highest number of withdrawals are Kraken, Binance, and Coinbase. It is speculated that Kraken and Coinbase have initiated a large portion of these withdrawals due to issues with U.S. regulators concerning liquid staking protocols.

What do you think the future holds for liquid staking protocols? Will their growth continue or will regulatory concerns and market volatility impact their popularity in the months to come? Share your thoughts in the comments section below.

Jamie Redman

Jamie Redman is the Head of News at News and a financial tech journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for News about the disruptive protocols emerging today.

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