- After the merge, several positive developments were witnessed in DeFi (Decentralized Exchange).
- Ethereum’s merger led to the development of staked ETH as “an out-and-out cryptocurrency-native yield-bearing instrument.”
- Staking pools like Lido and Rocket Pool account for the maximum amount of ETH staked.
A recent survey by Nansen indicates the outgrowth of Ether staking options soon after its shift to Proof of Stake. The data collected from various staking solutions in the crypto ecosystem indicate a rapid rise in Ether’s demand post-Ethereum’s merge. Additionally, one can also witness several positive developments in DeFi (Decentralized Exchange) after the merge.
Nansen’s report also highlights that Ethereum’s merger led to the development of staked ETH as “an out-and-out cryptocurrency-native yield-bearing instrument.”
Unknown Facts About Ethereum’s Merge
While Ethereum’s shift to Proof-of-Stake led to a greater demand for liquid Ethereum staking, it also led to several other developments.
For instance, with Ethereum’s shift to PoS, validators replaced miners. The new reform required validators to stake 32 ETH to earn rewards or propose new blocks.
However, validators who could not stake 32 ETH could also participate in liquid staking or pooled staking, which allowed users to withdraw their stakes whenever they wanted.
The report conducted by Nansen reveals that liquid staking options are mainly directed toward long-term investors. However, new protocols attracted new deposits and investments. The performance of these new protocols was way better than the established ones in terms of attracting new deposits.
Lido Leads the Market
Staking pools like Lido and Rocket Pool account for the maximum amount of ETH staked. In fact, out of the total number of staked ETH, Lido dominates the space with 79%. Lido’s staked ETH (stETH) also witnessed a 127% increase in staking post-Ethereum merge.
Likewise, staking pools of Rocket Pool and Coinbase also witnessed a rapid increase in staking in the next few months. No wonder Ethereum’s shift to Proof-of-Stake yielded positive staking results.