Back to main

Ethereum Staking Protocol Lido Finance Surpasses 1 Million Validators

Lido Finance – the leading liquid staking protocol on Ethereum – has reached a significant milestone in its development by tapping one million Ethereum validators.

This essentially represents a massive scale of participation in Ethereum 2.0 staking.

Such a large number of validators is expected to improve the security and resilience of the network, making it stronger against potential attacks.

Additionally, it would further decentralize the validation process, thereby reducing the influence of any single entity or group.

According to data compiled by Dune Analytics, Lido Finance currently holds the majority 28.5% of staked Ether, followed by Coinbase at 13.6%, with over 27% of the total Ether supply currently being staked.

1 million validators

— Lido (@LidoFinance) April 29, 2024

These protocols, like Lido, have seen rapid growth due to their liquidity benefits, allowing users to receive Lido Staked ETH (stETH) in return for their staked Ether, which can be utilized in other DeFi protocols. This contrasts with regular staking, where staked Ether remains locked and unusable for the staking period.

Liquid staking protocols like Lido Finance play a crucial role in “democratizing” participation.

By allowing users with limited capital to stake their assets, these protocols remove the barrier of the 32 Ether requirement needed to run individual validator nodes. Such accessibility opens up staking to retail users who may not have the resources to stake independently.

Through Lido and similar platforms, users can pool their assets together, collectively reaching the required threshold and earning staking rewards. In addition to promoting decentralization, it ropes in a broader audience to participate in securing and validating the network.

The post Ethereum Staking Protocol Lido Finance Surpasses 1 Million Validators appeared first on CryptoPotato.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Read on CryptoPotato Investment Disclaimer