Ethereum strike continues to be popular after last major update

While the focus of Ethereum (ETH) developers has already shifted towards the next step for the network that should significantly improve scalability, developments regarding staking on the network are also positive. Many will be aware of the fact that the popular layer-1 blockchain underwent a major update last month. The long-awaited Shapella update made it possible, among other things, to withdraw staked ether from staking contracts.

Meanwhile the hard fork almost four weeks have passed and the effects on ETH strikes are noticeable.

Ethereum strike is growing

A week after the Shapella update, you could already read in the Ethereum news that strikes on the network were growing again for the first time. In other words: for the first time the amount that was fixed in the strike contract was greater than the amount that was withdrawn.

At the moment there is a total of 97,586 ETH, which is worth $189 million at the current ethereum price, more stakes than withdrawals. This suggests that people are still quite optimistic about staking ether and earning rewards in return. In a sense, this is also positive for the ETH price, as a larger amount of ether is not available to be sold.

ETH liquid strike

The update on the Ethereum network also appears to have a positive effect for liquid staking providers such as Lido Finance. Liquid staking refers to depositing ether into a protocol which then stakes it on your behalf. In return, you get a tokenized version that represents your staked position and is available for decentralized finance (DeFi) applications.

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Data from Nansen shows that Lido Finance has had a nice increase in ETH stakes since the Shapella update. On April 12, the total was less than 5.7 million, but has now passed 6 million. Lido Finance also controls 79% of the Ethereum liquid staking market. Second place goes to Coinbase with a market share of about 15%.

However, Lido Finance users are not yet able to exchange their stETH for ETH. For this Lido needs to launch the V2 upgrade of the platform. It is not yet clear when exactly this will take place.

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