Lido’s Dominance Declines: 160,000 ETH Exits While Binance’s Staking Platform Grows

Liquid Staking in Transition: A Look at ETH Trends in 2025

In October 2024, the volume of Ethereum locked in liquid staking platforms exceeded 14 million ETH, a major milestone for decentralized finance (DeFi). However, as of January 2025, the total ETH held in these platforms has dipped below the levels recorded at the end of November 2024. Data as of Sunday, January 5, 2025, reveals that approximately 13.78 million ETH remains tied up in liquid staking protocols.

Shifts in the Liquid Staking Landscape

At the end of November 2024, reports showed that liquid staking protocols collectively held 13.85 million ETH. Since then, holdings have declined by 70,000 ETH. Liquid staking derivatives (LSDs) have proven transformative within DeFi, allowing users to stake their assets while retaining liquidity. This innovation addresses a critical limitation of traditional staking, where assets were often locked, preventing their use in other financial activities.

LSDs resolve this by creating derivative tokens representing staked assets, enabling users to earn rewards without sacrificing liquidity. Among these platforms, Lido has long been the leader, currently commanding 69.96% of the 13.78 million ETH held in LSD protocols. This dominance translates to 9.64 million ETH, valued at approximately $34.9 billion.

Lido’s Decline and Binance’s Ascendancy

Despite its leading position, Lido’s holdings have slipped significantly, losing 160,000 ETH since November 30, 2024, when it managed 9.8 million ETH. Meanwhile, Binance’s liquid staking platform is gaining momentum. Over the past 36 days, Binance accumulated an impressive 150,000 ETH. In contrast, Rocket Pool has experienced steady outflows, shedding 479,374 ETH between late October and the end of November 2024, with an additional 7,743 ETH exiting in the last 36 days.

Broader Trends and Implications

The 13.78 million ETH currently locked in LSD platforms represents 11.44% of Ethereum’s circulating supply of 120,474,080 ETH. This decline raises questions about the evolving priorities of DeFi participants. While Lido maintains a dominant position, its reduced holdings suggest that even market leaders are vulnerable to shifting user preferences and external pressures.

On the other hand, Binance’s growth underscores the competitive dynamics of the liquid staking sector. However, the overall reduction in locked ETH may signal broader caution within the Ethereum community, hinting at potential concerns about market conditions or the appeal of staking incentives.

As liquid staking continues to evolve, the competition between platforms like Lido, Binance, and Rocket Pool will likely intensify, reshaping the DeFi landscape in the process.