Summary
Lido’s dominance in staked Ether has been decreasing since early December, despite continued inflows to the Layer 2 network, Blast. Lido currently controls 31.8% of the staked Ether supply, down from over 32.3% three weeks ago. This decrease in dominance follows concerns from Ethereum decentralization supporters that the rising value of assets locked in Blast could push Lido’s dominance above one-third. Blast has seen increased deposits, with its total value locked reaching $1.12 billion on December 29. However, Lido’s dominance has retraced despite this.
Key Points
1. Lido’s staked Ether dominance has been decreasing since early December, falling from over 32.3% to 31.8%.
2. Despite continued inflows to the Layer 2 network Blast, Lido’s staking dominance has been diminishing.
3. Lido’s diminishing control over the supply of staked Ether follows concerns from Ethereum decentralization supporters that Blast’s rising value could push Lido’s dominance above one-third, potentially undermining the network’s decentralization.