Summary
Lido’s share of staked ETH has decreased, reducing concerns about concentration in the Ethereum network. JPMorgan believes this could help ETH avoid being classified as a security in the future. The Hinman documents highlighted the importance of network decentralization in determining if a digital token is a security. The recent Dencun upgrade should help Ethereum regain market share lost due to scalability issues.
Key Points
1. Staking platform Lido’s share of staked ether (ETH) has decreased from around one third a year ago to around a quarter at the moment, reducing concerns about concentration in the Ethereum network.
2. The Hinman documents, released last June, highlighted the importance of network decentralization in the SEC’s decision on whether a digital token should be classified as a security.
3. The recent Dencun upgrade is expected to help Ethereum increase its dominance against alternative layer 1 blockchains and recapture lost market share due to previous scalability issues.