According to the statistics provided by Glassnode, the deposit patterns across staking providers have lately been subjected to a substantial change. During the early stages of the Beacon Chain, the competition for deposit allocations was fierce, and Kraken, Binance, and Coinbase quickly rose to prominence as the leading candidates. On the other hand, Lido has overtaken its rivals over time and continues to dominate deposit inflows, according to familiar sources.
What caused the spike?
According to the statistics, the success of Lido may be linked to its novel offering, which enables users to stake their Ethereum 2.0 without having to run their nodes. This has proved an appealing choice for many investors searching for a hassle-free way to participate in the Ethereum 2.0 staking process. Additionally, Lido has acquired a reputation as a prominent staking provider because it offers significant returns while charging cheap costs. This further strengthens Lido’s position as the market leader.
To prepare for the highly anticipated Shanghai Hard Fork, also known as Shapella, the leading decentralized finance (DeFi) platform Lido Finance is improving its Ethereum liquid staking solution. It is anticipated that the next V2 release will be a significant step forward in Lido’s preparations for the forthcoming hard fork. Because Shapella will be released in less than a week, the Lido ecosystem has announced a crucial upgrade regarding Ethereum withdrawals.
No more mistakes and delays
Lido will introduce a method of withdrawing Ethereum that is safer and more efficient with the V2 release. Owing to the upgrade, the processing of withdrawals will be improved to be more streamlined and efficient, reducing the likelihood of mistakes and delays.
This is particularly significant since the Ethereum blockchain will undergo additional modifications due to the Shanghai Hard Fork, which might affect the withdrawal process. The V2 version will also give users a more transparent and safe method for staking Ethereum. This will make it simpler for users to participate in the network and receive rewards.
Because the Shanghai Hard Fork is an essential event for the Ethereum ecosystem, DeFi platforms like Lido must allegedly guarantee they are appropriately prepared for it. The V2 upgrade is a crucial step toward the completion of this preparation, and it is anticipated that it will give users a liquid staking solution that is more robust and stable. To continue offering its customer base the highest possible level of service, Lido and other DeFi platforms must ensure that they are always up to speed with the latest developments on the Ethereum network.