• Lido’s market share has declined significantly due to the entry of Coinbase into the liquid staking derivatives market.
• The number of new ETH staked deposits on Lido decreased, due to competitors offering better APR rates.
• The percentage of large holders of LDO decreased and network growth of the token was also affected.
The advent of Coinbase into the liquid staking derivatives market has had a significant impact on Lido’s market share, resulting in a drastic decline in their share of the market. According to Delphi Digital’s recent data, Lido’s market share has dropped from 85% to 73%. This can be attributed to the fact that Coinbase’s entry into the market provided customers with more competitive APR rates than Lido could provide.
The interest in staking ETH with Lido has also decreased, resulting in the number of new staked deposits on Lido falling from 80% to less than 40%. This can be attributed to the fact that competing platforms such as Frax Finance have been able to provide customers with higher APR rates than Lido, meaning customers have opted for them instead.
The activity of staked ETH has also been affected, with Santiment’s data showing that the percentage of large holders of LDO has decreased significantly over the last month. Furthermore, the network growth of the token has also decreased, indicating that new users were not buying LDO at its current price.
All of the above factors have had a negative impact on Lido’s market share and token value, resulting in investors fleeing the platform. It remains to be seen how the platform will respond to the current situation and whether it will be able to make a comeback in the liquid staking derivatives market.