Coinbry

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CoinGecko reports that the Ethereum LSDFi sector has experienced a growth of almost 60 times since January during the post-Shapella surge.

CoinGecko reports that the Ethereum LSDFi sector has experienced a growth of almost 60 times since January during the post-Shapella surge.

In the wild and untamed world of LSDFi, a sector that has grown at an astonishing rate of 5,870% since January, Ethereum holders are seeking refuge and better yields. They have chosen to stake their Ether (ETH) rather than liquidate it, defying expectations and embracing the power of LSDFi.

Despite the option to withdraw ETH being made available with the Ethereum Shapella upgrade in April 2023, the LSDFi sector has flourished. A recent report from CoinGecko reveals that the sector has grown by a staggering 58.7 times since the beginning of the year.

By August 2023, LSD protocols accounted for a significant 43.7% of the total 26.4 million ETH staked, with Lido leading the pack and capturing almost a third of the market. It seems that ETH holders are not willing to part ways with their assets after withdrawing, as they prefer to re-stake for better yield opportunities.

The statistics speak for themselves. CoinGecko highlights that since withdrawals were enabled, the exit queue has remained at zero for more than half of the time and stayed below 10 validators for 77% of the time. This demonstrates the strong conviction of ETH holders in the LSDFi ecosystem.

LSDFi protocols were introduced to allow smaller ETH holders to participate in staking and unlock liquidity after the launch of the Ethereum Beacon Chain in December 2020. And it seems that this approach has paid off, as the total value locked (TVL) across the top 10 LSDFi protocols (excluding Lido) has soared to over $900 million since the beginning of this year.

In contrast, the total TVL in decentralized finance (DeFi) has experienced a contraction of around 8% during the same period, according to DefiLlama. The average yield for LSD protocols since January 2022 has been a promising 4.4%, although this figure is expected to decline as more ETH is staked.

Currently, there are approximately 27.6 million ETH staked, with a total value of around $43.4 billion, according to Beaconcha.in. The LSDFi sector continues to captivate the attention of Ethereum enthusiasts, with Diva emerging as a formidable player.

Diva has launched a “vampire attack” on Lido, enticing users and liquidity by offering higher incentives. By offering token rewards to stakers who lock up their ETH and Lido staked ETH (stETH) for divETH, Diva has seen its TVL surge by an impressive 650% since the beginning of October.

In summary:

– The LSDFi sector has experienced remarkable growth, with a 5,870% increase in TVL since January.

– ETH holders are choosing to stake rather than liquidate, indicating their confidence in the LSDFi ecosystem.

– LSD protocols account for a significant portion of the total ETH staked, with Lido leading the market.

– The LSDFi sector has outperformed decentralized finance (DeFi) in terms of TVL growth.

– Diva has launched a successful “vampire attack” on Lido, attracting users and liquidity with higher incentives.

The LSDFi sector is thriving, and ETH holders are reaping the rewards of staking rather than liquidating. The future looks bright for this wild and untamed corner of the crypto world.

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