About The Lido’s Top Stakeholders

In this article , we aim to find the top stakers using Lido on Ethereum.

Staking and mining are two different phenomena related to cryptocurrency that are used for creating new coins and circulating them on the market. In mining, a miner solves computational equations to mine new coins and get rewarded. As part of staking, a staker deposits money into a cryptocurrency wallet to support the security and operation of a blockchain network. In its simplest form, staking is the process of locking cryptocurrencies to receive rewards for holding them.

Staking is a term used to refer to the delegating of a certain number of tokens to the governance model of the blockchain and thus locking them out of circulation for a specified length of time

Nicole DeCicco

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Ethereum 2.0 has not yet been launched and no deadline has been set, once ETH tokens have been staked they cannot be withdrawn until Ethereum 2.0 is launched.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.

We can see below the top 10 stakeholder entities using LIDO from the following graphs.  In this case, we are identifying the top stakers who are staking Ethereum using Lido stake providers. The total staked Ethereum is 995.67K across all top 10 stakers.

Here from the below graph we can see how they are these top 10 stakers staked ethereum on weekly basis.

We can see from the graph below how these top 10 stakers staked Ethereum on a monthly basis. There are few users who stake their ethereum in a single attempt but there are a few who stake their ethereum multiple times. Over half (52.04%) of Staked Eth came from top three Stakers. During March 2022, the second top user staked his entire ethereum portfolio in one attempt. Total staked by “The number 0x220bda5c8994804ac96ebe4df184d25e5c2196d4” is in the top spot of all the top ten stakers. Moreover, the amount staked by this is the highest during April 2022. 

The above analysis shows that during March 2022, the second highest staker staked his entire ethereum portfolio. In terms of staked, out of all the top ten shareholders, 0x220bda5c8994804ac96ebe4df184d25e5c2196d4 has the most staked. The amount staked by this user is the highest during April 2022. As a result, we can say that most of the stakes by top 2 occurred between March and April of 2022. Considering that the release date of Ethereum Merge is very near, we may assume that all of this has already taken place. Later, when the announcement of the postponement of Ethereum merge was made, we might think that staking of Ethereum has perhaps fallen down as we can see from all other top stakers.

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