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Shift in Ethereum Staking: Lido Users Transition to Ether.fi and Renzo

Amidst a recent dip in Ethereum prices, ETH holders have been observed shifting their staking preferences away from Lido Finance towards alternative protocols, namely Ether.fi and Renzo.

According to data from a Dune Analytics dashboard curated by researcher Hildobby, Lido Finance experienced the highest outflow of Ethereum (ETH) among similar protocols in the past month. Over 284,800 ETH was withdrawn from Lido’s platform, signaling a significant change in staking behavior. Despite this, Lido remains a dominant force in the Ethereum staking landscape, maintaining a 29.7% market share.

On-chain data reveals a notable trend of ETH stakers migrating towards liquid restaking protocols, with Ether.fi and Renzo Protocol emerging as the primary beneficiaries. Ether.fi saw an influx of over 400,000 ETH, while Renzo Protocol attracted approximately 280,100 ETH in the same period.

DefiLlama data highlights Ether.fi and Renzo as the leading liquid restaking platforms, boasting impressive total value locked (TVL) figures. Ether.fi commands a TVL of $3.1 billion, while Renzo has attracted investments exceeding $2.1 billion. Collectively, users have locked over $8 billion in these protocols, signaling a growing confidence in their offerings.

The transition from Lido to liquid restaking platforms like Ether.fi and Renzo underscores a broader interest in Eigenlayer points within the defi community. Leveraging Eigenlayer’s platform, these protocols enable stakers to secure various networks and solutions using ETH, expanding beyond traditional staking mechanisms.

This trend aligns with Ethereum’s transition to a proof-of-stake consensus mechanism following the Merge in September 2022. Stakers now play a pivotal role in Ethereum’s security by locking up ETH with validators. Eigenlayer has capitalized on this paradigm shift by incentivizing participants with points, potentially paving the way for future token airdrops.

In summary, the Ethereum staking landscape is witnessing a notable evolution, with users diversifying their staking strategies and exploring alternative platforms like Ether.fi and Renzo. As the defi ecosystem continues to mature, the role of liquid restaking protocols is expected to grow, offering stakers greater flexibility and opportunities for yield generation.

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