Ethereum News Today: Lido Ethereum Staking Share Dips to 24.4% as Competition Intensifies

Lido’s Ethereum staking share has fallen to a historic low of 24.4%, a significant decline from the 32.3% it held in 2023 [1]. This drop highlights the growing competition within the Ethereum staking ecosystem and reflects a broader shift in how staking services are being adopted across both institutional and retail markets. The decline is attributed to the emergence of institutional-grade staking infrastructure and the diversification of staking options, which are encouraging users to spread their ETH across multiple providers.

The Ethereum staking landscape is evolving rapidly, with new entrants such as Figment gaining traction. As a service primarily focused on institutional clients, Figment has seen a surge in ETH deposits from asset managers and funds, especially following the U.S. Securities and Exchange Commission's (SEC) clarification in May that staking is not a securities activity [1]. This regulatory clarity has removed a significant barrier for institutional investors, enabling them to engage more confidently in staking activities.

Rocket Pool’s general manager, Darren Langley, noted the community-driven effort to prevent any single provider from dominating more than one-third of the staked ETH, a threshold that could pose consensus risks [1]. The decentralization of the staking market is now more apparent, as platforms beyond Lido—such as Rocket Pool and Figment—gain market share and offer more competitive and flexible staking solutions.

The broader crypto market is also showing signs of renewed activity, with Bitcoin recently reaching a record high of $124,000 and Ethereum maintaining a market capitalization of $550.32 billion [1]. These developments suggest a stronger appetite among both retail and institutional investors for digital assets. The increased interest is expected to drive demand for staking services, which offer passive income through ETH holdings.

BlackRock’s recent application for an Ethereum ETF that includes staking has further raised expectations for institutional adoption of staking services [1]. If approved, this product could provide a streamlined mechanism for institutional and retail investors to earn staking rewards, potentially attracting more capital into the staking ecosystem. Such developments could benefit platforms like Lido, provided they can adapt to the changing market dynamics and offer compelling value propositions.

Despite the loss of market share, Lido’s situation is not necessarily a setback but rather a reflection of a maturing and more competitive market [1]. The shift signals a broader trend of market diversification and increased innovation in the Ethereum staking space. However, maintaining relevance will require Lido to innovate and offer differentiated services that meet the needs of a more sophisticated and diverse investor base.

Source:

[1] Lido's Ethereum Staking Share Hits Record Low Amid Rising Competition (https://www.cryptotimes.io/2025/08/15/lidos-ethereum-staking-share-hits-record-low-amid-rising-competition/)

[2] Bybit EU Launches MiCA-Compliant Launchpool with XION (https://m.economictimes.com/crypto-news-today-live-14-aug-2025/liveblog/123288029.cms)

[3] Ethereum Price, ETH Price, Live Charts, and Marketcap (https://www.coinbase.com/price/ethereum)

[4] Bitcoin Hits $124K Record as 4 Tailwinds Align: Crypto Daybook (https://www.coindesk.com/daybook-us/2025/08/14/bitcoin-hits-usd124k-record-as-4-tailwinds-align-crypto-daybook-americas)