Ethereum bettors leave Lido for Ether.fi and Renzo

While ethereum prices fell more than 4% in the last 30 days, eth holders have moved away from Lido Finance towards recovery protocols.

According to a Dune Analytics dashboard that tracks staking activity, Lido Finance had the largest outflow of ethereum (eth) among similar protocols in the last month.

The page created by researcher Hildobby indicated that participants withdrew more than 284,800 eth from the Lido platform. However, Lido maintained its dominance over the ethereum staking sphere with a 29.7% market share.

Chain data revealed that eth stakers are flocking to liquid recovery protocols. Lido recorded the largest monthly outflows, while Ether. fi and Renzo Protocol attracted the largest inflows, with over 400,000 and 280,100 Ether, respectively.

According to DefiLlama, Ether.fi and Renzo are the two largest liquid recovery platforms available. Ether.fi has a total value locked (TVL) of $3.1 billion, and traders have invested more than $2.1 billion in Renzo. Users have locked more than $8 billion into these protocols.

ethereum bettors bet on Eigenlayer points

Lido's shift to liquid investors like Ether.fi and Renzo underlines the interest in Eigenlayer points among Defi participants. Liquid recovery protocols leverage Eigenlayer's platform to allow participants to secure other networks and solutions with eth.

The practice arose from staking, a defining feature of the ethereum blockchain after the merger in September 2022, shifting from a proof-of-work to proof-of-stake consensus mechanism. Under the new paradigm, stakers replaced miners as the primary guardians of the ethereum chain by locking eth with validators to initiate security.

Eigenlayer expanded this initiative by repurposing staked eth into a broader basket of protocols and chains linked to ethereum. The protocol rewards participants with points, and the main thesis suggests that these points can be converted into a token airdrop in the future.

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