Ethereum Staked With Lido

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The purpose of this article is to show what is the net amount of ETH that has been staked with Lido. Show the daily amount of ETH staked and un-staked with Lido in the past 3 months. Can you see any trends?

As part of this section, we will look at how LIDO stakes on ETH and the amount staked. Let’s take a moment to introduce LIDO Stake provider before we proceed.

What is Lido and what problems does Lido solve?

Ethereum’s transition to proof of stake (PoS) began on December 1st, 2020, with the launch of the Beacon Chain. As a result, holders of Ethereum tokens were able to earn rewards by staking their tokens to protect the Ethereum network. However, staking is not something a typical ETH cryptocurreny holder can do because it requires extensive technical knowledge to make it work. Here are some issues associated with staking ETH tokens.

1. Technical expertise: It is important for a person to have the ability to install and update software all the time so as to stay current with the latest release of the stake module. The failure to run the software due to power outages or other issues results in a loss of rewards and in the worst case, staked Ethereum.

2. No unstaking: Due to the fact that Ethereum 2.0 has not yet been launched and no deadline has been set, once ETH tokens have been staked they cannot be withdrawn until Ethereum 2.0 is launched. Because there is no deadline for Ethereum 2.0 network launch, no one knows when they will be able to withdraw their funds. Probably by the end of 2023, maybe even earlier. All depends on how quickly Ethereum core developers complete the transition from Proof of Work to Proof of Stake.   

3. ETH Token requirements: In order to serve as a validator and stake tokens, one must have ETH tokens worth 32 ETH. At today’s ETH price it is more than 100,000 USD investment one must make to start earning staking rewards. 

Lido tackles all these problems head on and solves them elegantly. With LIDO, anyone can stake ETH tokens even if they only have a fraction of them. Lido’s liquid staking solution for Ethereum is backed by the biggest providers.

How Lido Works?

In essence, Lido is an Ethereum smart contract that allows ETH holders with less than 32 ETH to pool their funds and earn rewards. Pooled funds are distributed among selected operators of Ethereum validators that are required for staking operations.

Lido also solves the liquidity problem of ETH stakers by issuing a special ERC20 token, stETH, at a 1:1 ratio when users deposit their ETH for staking. StETH tokens can be traded, transferred, and used in major Defi protocols, just like ETH. If a user wishes to unstake their ETH, they can sell stETH on Curve for ETH and use it however pleases them.

We can see the following graphs showing ETH staking deposits since 1st of 2022 and the amount staked on ETH since that date.

Ethereum Merge

The Merge allows for decentralization and security by requiring a minimal number of nodes and reducing the amount of work required to run nodes Compared to PoW, PoS requires 99% less energy Through scalability, it opens the possibility of sharding and 100k TPS in the future.

As we all know that the Ethereum Merge is coming soon , From the tweet we can see that.

Staking Deposits and Amount Staked On ETH Since Jan 1st,2022

Here we can see the total staked Ethereum since January 1,2022. At the time of writing, the total Ethereum balance was 11.11M.

This chart shows the number of ETH staking deposits and the value of staked ETH on a daily basis since January 1,2022. Observed maximum deposits were 6.35K on March 15, 2022. A steadily increasing trend in deposits has been observed.

Initially, there is not much staked ETH, but as time goes on we can see a moderate amount of staked ETH increase. We can observe on March15th , 2022 a maximum amount of staked ETH as more than 200K .It might be due to the announcement of Merge coming closer as well as a greater quantity of Ethereum is staking by stakers to use its benefits.

Staking Deposits and Amount Staked On ETH By Stake Providers

This graph allows us to view the staking deposits and amounts staked upon ETH by multiple stake providers, as well as to see the stakers and stake amounts by percentage on ETH. By comparing the number of ETH staking deposits by different providers, the LIDO is showing the maximum number of deposits.

Over three quarters of the total deposits (78.93%) came from LIDO stake providers.The amount of deposits has risen in recent months. According to the below graph showing ETH stake deposits by various providers, after LIDO, there are more ETH stake deposits in the Rocket Pool since Jan 1, 2022.

In the graph below you can see the amount of Ethereum staked by different providers. The total amount of Ethereum staked between January 1, 2022 and April 04, 2022 was 1.71M. More than 80% of the total staked Eth was contributed by LIDO.

Below is a graph showing the amount of ETH staked by each provider and their respective proportions. LIDOS contributed more than 80% of the ETH staked in total. According to the amount of ETH staked, the second place goes to Figment and the third place to Rocketpool. 

Based on the below given heat map, we can see where an amount of Ethereum has been staked since January 1, 2022 on which day of the week.We can see on Tuesday of Week 11 2022 (March 13-19,2022) that there is a significant amount of ethreum staked.

We can see that there has been a significant increase of 248.53% of ETH staked on Week 11 of 2022 based on the weekly growth of staked Ethereum by all providers.

Staking Deposits and Amount Staked On ETH By LIDO

Below are graphs showing the number of staking deposits LIDO made on the Ethereum network as well as the amount staked by LIDO on Ethereum. Between January 1, 2022 and April 4, 2022, 1.41M Staked Ethereum was generated. A maximum of 196.96K was observed in Staked Ethereum on March 15, 2022, and a minimum of 608 was observed on February 14, 2022.The staked Ethereum by LIDO trend shows an upward trend. The total of ETH in March 20, 2022, and on February 24, 2022 is higher than normal, and in March 15, 2022, and on February 23, 2022, it is lower than normal.

Here from the below graph we can see the number of ETH staking deposits by LIDO stake providers since Jan 1, 2022 . Trends in staked Ethereum are rising. There were 44.06K staked deposits by LIDO between January 1, 2022 and April 4, 2022. The highest LIDO staked deposit of 6.16K was observed on March 15, 2022. Deposits were on the rise during this period. For March 15, 2022, and February 23, 2022, there we can see a sudden increase of ETH staking deposits by LIDO.

This heat map shows the number of staked deposits for LIDO on each day of the week and on a weekly basis since January 1, 2022 . LIDO staked a greater number of deposits during Week11 2022 (March 13-19,2022). 

In the below graph, we can see that the number of users that staked ETH with LIDO has been rising week over week since Jan 1 ,2022 and even more recently since Mar 13-19,2022. As a result of Kiln’s completion, Ethereum is now closer to merging than ever before. 

Observations:

  • In regards to the LIDO staking service, the staked amount of Ethereum and the staked number of deposits are very high when compared with other staking service providers. Because holders of Ethereum tokens were able to earn rewards for protecting the Ethereum network by staking their tokens. Staking is, however, not something most ETH holders can do since it requires a great deal of technical expertise. These expertise features made it very popular.
  • From the above analysis ,the LIDO staking service providers represents 82.65% of the Ethereum staked amount and 78.93% of the staked deposits out of all Ethereum staked amount and staked deposits respectively.
  • According to the analysis above, it can be seen that the number of stake deposits for Ethereum, as well as the number of stakes staked, is trending upwards. In particular, we can see that the maximum amount of Eth has been staked on March 15, 2022. All of this change can be attributed to the recent Ethereum announcements. It has been announced that a new version of Ethereum will be released soon, adding to what was already an announcement that Kiln is nearing completion, making it more probable than ever before that Ethereum can “merge.” Furthermore, we can see that the total staked in Ethereum has reached up to very impressive more than a 11 million dollars.

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