Lido vs. The Field
This dashboard examine where Lido is situated in the field of ETH staking.
Introduction
One way to generate passive income while holding cryptocurrencies is staking. Cryptocurrency holders can stake their assets and through validators contribute to proof of transactions and get rewards. This can be possible only in blockchains that are based on 'proof of stake'. However, major blockchains such as Bitcoin and Ethereum are based on 'proof of work' staking meaning that they do not offer reward through staking.
Yet, few platforms provided solutions that make specifically ETH staking possible. Lido was one of the first one. On LIDO once users stake ETH, they will receive stETH in 1:1 rate. stETH can be used in decentralized finance platforms for generating passive income.
This dashboard examine where Lido is situated in the field of ETH staking.
Definitions, data and method
The two following metrics have been used to asses Lido's performance and popularity:
1- the number of unique stakers: stakers are defined as those wallet who staked ETH with Lido and received stETH against it.
2- the amount of stake in ETH.
In addition to Lido, two other similar platforms have been considered for comparison:
1- Rocket Pool
2- ANKR
To grab stakers and amounts of stake, the distribution of staked ETH tokens has been used.
The assumption is that who received staked ETH token from a platform, principally commited staking on that platform. Amount of received staked ETH is also equal to amount of staked ETH on that platform.
For LIDO we relied on stETH, for Rocket pool and ANKR, in turn, rETH and aETHc have been used.
Results
The graph below shows the daily number of unique wallets who staked ETH with LIDO as well as the daily amount of ETH staked with LIDO.
We can see that after a sharp growth in August 2021, LIDO has experienced a relatively rapid fall both in terms of number of users and amount of stake. However, since October 2021, we can see a steady upward trend.
Lido vs the field
The graphs below show the ETH staked on the three platforms. we can see that Lido is dominant in terms of both number of users and amount of ETH staked.
In the beginning ANKR had a good share of ETH stake, and recently Rocket Pools is attracting ETH staked. However, overall Lido played a prominent role in the field.
Graphs below show the daily number of stakers over time in all three platforms.
We can see almost the same pattern.
Conclusion
Throughout this dashboard the performance and popularity of Lido compared with two competitors Rocket Pool and ANKR.
The analysis show that Lido is dominant in two respects: number of users (popularity) and amount of staked ETH (performance).
The graphs below show the trends.
We can see that although Lido is ahead, Rocket Pool experienced a rapid growth and is possible to gain more popularity in next couple of months.