4895 which allows users to withdraw their locked up tokens representing staked ether from the beacon chain the ability to withdraw staked either could increase Market liquidity and make it easier for users to access their funds ethereum liquid staking platforms which largely emerge to alleviate the blockchain’s prohibitive lockup and Staking requirements could also benefit from the upgrade but many have hesitated to stake their EDS due to the unavailability of withdrawals consequently only around 15 percent of Eva’s currently staked while all other major layer -1 networks have a staking ratio above 40 percent Source staking rewards according to the Defy investor many investors will opt for a liquid staking option following the Shanghai upgrade as they can utilize liquid staking derivatives on other decentralized Finance networks without forfeiting their staking yield Revenue goes up their tokens benefit as well the defy investor at the deaf investor January 4 2023 the defy Investor went on to say that once stake death becomes available for withdrawal the revenue of liquid staking providers will likely significantly increase which may positively impact their tea furthermore The increased competition between these platforms will likely benefit their users through lower fees and additional perks in exchange for their loyalty Lido is the largest liquid staked ad provider and is a market leader in its segment other notable liquid staking providers include rocket pool anchor coinbase and frax finance all of which are anticipated to enjoy an increase in usage post Shanghai for example polka dots.dot can be liquid staked via anchor cosmos’s atom atom Through Stephie and Solana’s Saul Saul on Lido and marinade Finance by comparison at least three six million Salas liquid staked 1 21 million salt via marinade finance and two 39 million Saul through Lido liquid staked as balances comparison by provider Source Dune at radido3b liquid staking and staking pools provide ethereum a leg Up on competitors by improving interoperability for decentralized applications in the ecosystem providers like Lido and rocketpool remove the barrier to entry for eth holders to stake without committing to 32f or running a validator node that brings ethereum closer to networks like Solana which has a lower barrier to entry for staking While the concentration of Ed’s State through third parties raises concerns over decentralization at Lido and coinbase in particular there has been a roughly nine percent increase in total validator nodes in the network in the past 30 days raising the total number of ethereum nodes to 11 786 at the time of Thanks for watching please subscribe my channel to get more cryptocurrency news and updates Invest in crypto currency SIP for huge returns check out link now https://tinyurl.com/EarnHugeReturns Ethereum Shanghai upgrade could benefit liquid staking providers and cement ETH’s layer-1 dominance #crypto #cryptocurrency #bitcoin #blockchain #litecoin #etherum #dogecoin #NFT #DeFi #ripple #altcoin #metaverse FAIR-USE COPYRIGHT DISCLAIMER: Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for “fair use” for purposes such as criticism, commenting, news reporting, teaching, scholarship, and research.Fair use is a use permitted by copyright statute that might otherwise be infringing.Non-profit, educational or personal use tips the balance in favor of fair use.Ethereum’s upcoming Shanghai upgrade will allow users to withdraw staked Ether (ETH), increasing the network’s liquidity and competitiveness while also boosting its staking ratio closer to its competitors.The Shanghai upgrade is a hard fork of Ethereum tentatively scheduled to occur in March.It implements five Ethereum Improvement Proposals, the headliner being EIP-4895, which allows users to withdraw their locked-up tokens representing staked Ether from the Beacon Chain.The ability to withdraw staked Ether could increase market liquidity and make it easier for users to access their funds.
Ethereum liquid staking platforms, which largely emerged to alleviate the blockchain’s prohibitive lock-up and staking requirements, could also benefit from the upgrade.Since the Ethereum network moved to proof-of-stake (PoS) in September 2022, increasing the percentage of staked Ether has become important to help secure the protocol.But many have hesitated to stake their ETH due to the unavailability of withdrawals.
Consequently, only around 15% of ETH is currently staked, while all other major layer-1 networks have a staking ratio above 40%.Top crypto assets by staking market cap.
Source: Staking Rewards According to The DeFi Investor, many investors will opt for a liquid staking option following the Shanghai upgrade, as they can utilize liquid staking derivatives on other decentralized finance networks without forfeiting their staking yield.Why? Because liquid staking derivatives can be used across DeFi without giving up the staking yield.After withdrawing staked $ETH becomes available, the revenue of liquid staking providers will likely take off.revenue goes up – their tokens benefit as well — The DeFi Investor (@TheDeFinvestor) January 4, 2023 The DeFi Investor went on to say that once staked ETH becomes available for withdrawal, the revenue of liquid staking providers will likely significantly increase, which may positively impact their token prices.
Furthermore, the increased competition between these platforms will likely benefit their users through lower fees and additional perks in exchange for their loyalty.Lido is the largest liquid-staked ETH provider and is a market leader in its segment.Other notable liquid staking providers include Rocket Pool, Ankr, Coinbase and Frax Finance, all of which are anticipated to enjoy an increase in usage post-Shanghai.Ethereum leads in liquid staking activity Ethereum Beacon Chain deposits across all staking providers have been on the uptrend since the chain officially opened for deposits in late 2020, indicating a strong, sustained interest in staking ETH following the Shanghai upgrade.
While Lido captures the lion’s share of liquid staking on Ethereum, the competition is heating up, with various providers unveiling product improvements, potentially reducing the risk of any single staking provider being a point of centralization for the Ethereum network.Total ETH staked over total Ethereum validators.Source: Dune/@hildobby It is possible to liquid-stake the tokens of other layer-1 networks as well.For example, Polkadot’s DOT (DOT) can be liquid-staked via Ankr, Cosmos’s ATOM (ATOM) through StaFi, and Solana’s SOL (SOL) on Lido and Marinade Finance.
While competing networks have budding liquid-staking solutions of their own, Ethereum maintains the lead, with over 7 million ETH liquid-staked across all sources.
By comparison, at least 3.6 million SOL is liquid-staked — 1.21 million SOL via Marinade Finance and 2.39 million SOL through Lido.Liquid-staked ETH balances comparison by provider.Source: Dune/@Ratedw3b Liquid staking and staking pools provide Ethereum a leg-up on competitors by improving interoperability for decentralized applications in the ecosystem.This increased participation strengthens the security and utility of all protocols using Ethereum’s PoS cons… source.
