According to the on-chain monitoring tool Glassnode, the amount of ETH that is staked each month has decreased of late.
In recent weeks, Ethereum staking deposits have experienced a small decline. This can be attributed to increasing regulatory pressure and the upcoming update from Shapella on April 12.
Glassnode published a study on the condition of the ethereum staking environment on April 9. Statistics show a recent decline in deposit activity, citing regulatory pressure and the Shanghai update.
Currently, Lido is responsible for about a third of the total amount of ETH that has been staked. This equates to around $11 billion based on the 5.9 million ETH now sitting on the platform.
This year, financial officials in the United States have been putting significant pressure on cryptocurrencies. Although no formal act of Congress classifies ETH, the Securities and Exchange Commission (SEC) is certain that ether is a security. He has clamped down on gambling due to this belief.
On April 12, the ethereum network will finally receive an upgrade that has been in the works for quite some time. The progressive release of ETH staked on the Beacon Chain will be possible through the Shapella update, also known as the Shanghai hard fork.
According to Glassnode, these two contributing reasons decreased Ethereum staking deposits.
The company also said that major centralized exchanges such as Coinbase, Binance and Kraken had lost considerable market share to the liquid staking platform Lido.
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Centralized exchanges like Coinbase, currently in a legal battle over staking, charge a fee of 25% of staking rewards. The fees Coinbase charges for other assets like Cardano and Solana are considerably more significant.
Lido charges a 10% commission and allows users to earn additional returns on DeFi platforms by staking their Lido Staked ETH. Lido also charges its users a 10% fee (stETH). This helps explain the change over time as experienced players migrated to platforms that offered higher potential wins.
Analysts anticipate that liquid staking platforms like Lido will pick up activity significantly when ETH is released from the Beacon Chain due to the Shapella upgrade.
