Ethereum LSDI sector up almost 60x since January on post-Shappella increase: CoinGecko
The Ethereum Liquid Staking Derivatives Finance (LSDFi) ecosystem has seen growth this year as owners of Ether (ETH) have opted for staking rather than liquidation.
Despite the April 2023 ATM Capella update to enable ETH mining, an October 16 LSDFi report from crypto data aggregator CoinGecko showed the sector has grown by 58.7x since January.
In the year By August 2023, LSD protocols will account for 43.7% of the total 26.4 million ETH share, with Lido holding the lion's share of one-third of the total market.
LSDFI sector growth statistics show that after withdrawing, ETH holders prefer to re-engage for better yield opportunities rather than liquidate their holdings.
CoinGecko reports that since withdrawals have been made, the withdrawal queue has remained at zero more than half (55%) and less than 10 validators 77% of the time.
LSDs were introduced to allow small ETH holders to participate in the stake and unlock liquidity after the launch of the Ethereum Beacon chain in December 2020.
As of the beginning of this year, the total value locked (TVL) in the 10 leading LSFi protocols, excluding Lido, has reached more than $900 million, the report said.
Since January 2023, TVL has grown by 5,870% in LSFi protocols. Comparatively, total decentralized financial TVL contracted by 8% over the same period, according to Defillama.
The average yield of LSD protocols since January 2022 was 4.4%, although this decreases as the amount of ETH in stock increases.
There are currently 27.6 million ETH shares worth around $43.4 billion, Beconcha.in reports.
Related: Liquid Vault Emerges as Game Changer for Crypto Investors
In the last two weeks, Ethereum supporters have been promoting the LSDFI platform, Diva, which is conducting a “vampire attack” on Lido, misleading users and offering high incentives from Lido.
The Diva Vampire Attack on Lido is picking up steam.
More than 11k Steth is saved to keep the number down pic.twitter.com/vtzVXdKypD
— Evan Van Ness (@evan_van_ness) October 13, 2023
Diva ETH and Lido staked ETH (stETH) offer token rewards to stakeholders who stake DivaETH. Since early October, Diva's TVL has risen 650% to 15,386 STTH, worth around $24 million, according to Divascan.
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