Lido Finance Market Share Drops to Lowest Since 2022 Amidst Staking Volatility

Key Points

1. Lido Finance's Ethereum staking share dropped to 25%, the lowest since March 2022, down from 32% in February and 29.6% in March.

2. Centralized exchanges Binance and Coinbase hold 8.3% and 19% of the staking market, respectively, while unidentified validators occupy another 19%.

3. Total staking deposits reached a record ~36.5 million ETH on July 16 before dropping to 36.1 million ETH, with validator exit queues surging from 1,920 to over 475,000 in a week.

4. A sharp reduction in ETH supply on Aave and HTX exchange, with over 167,000 ETH withdrawn starting June 18, drove volatility and increased WETH loan rates from 2% to 18% in a week.

5. Lido's stETH token lost its peg to ETH, but Aavechan co-founder Mark Zeller noted the situation is stabilizing with borrowing rates nearly normalized.