, an analyst on CryptoQuant, Liquid Staking Tokens have successfully utilized 41% of the total ETH staked in the ecosystem. This high level of utilization raises concerns, as it indicates a significant dependency on this particular form of staking.Furthermore, it was worth noting that these LSTs were leveraged by a factor of 2, introducing potential dangers and weaknesses to the ecosystem.
At press time, the largest players in this sector were Lido and Rocket Pool. The staked ETH tokens associated with both protocols, stETH and rETH respectively, witnessed a notable surge in interest and usage. This surge was evident from the growing number of token holders, indicating an increasing interest among various addresses.
In addition to the growing number of token holders, the velocity of these tokens also witnessed an uptick. This suggested that the frequency with which these tokens were being transferred and used also increased, reflecting a higher level of activity within the ecosystem.However, it was essential to highlight that the growth of Liquid Staking Tokens was not solely driven by their own appeal, but also by the broader interest in the Ethereum protocol and ETH.
Over the past month, the revenue generated by validators witnessed a significant decrease of 62.07%. Despite a decline in revenue for validators on the Ethereum network, the number of validators experienced a notable surge of 7.65% in the last 30 days, reaching a count of 637,732 according to Staking Rewards’ data. This sustained interest in staking remains intact, even in the face of falling revenue.