The amount of ETH being staked monthly has decreased despite the hype created by the much-anticipated Shapella upgrade.
The recent Glassnodem staking deposits have somewhat decreased over the last several weeks. Rising regulatory pressure and the April 12 upgrade to Shapella could be to blame for this.
On April 9, Glassnode published a report on the state of the ethereum staking environment. According to the statistics, deposit activity has recently decreased as a result of regulatory pressure and the Shanghai upgrade.
Now, Lido is in charge of almost one-third of the ETH that has been staked. Based on the 5.9 million ETH now owned on the platform, this equates to over $11 billion.
United States banking authorities have put a lot of pressure on cryptocurrencies this year. The Securities and Exchange Commission (SEC) is confident that ETH is a security even if there is no official law from Congress categorizing it.
This idea has led to restrictions on stakes.An update that has been planned for a while will be released to the Ethereum network on April 12. The Shapella update, also known as the Shanghai hard fork, will enable the gradual release of ETH staked on the Beacon Chain.
These two contributing factors, in accordance with Glassnode, led to a decline in Ethereum staking deposits.The company added that Lido, a liquid staking platform, had significantly eroded market share for important centralized exchanges like Coinbase, Binance, and Kraken.
Centralized exchanges like Coinbase, who are currently engaged in a legal dispute over staking, take a 25% cut of the benefits from staking. Coinbase charges significantly higher commissions for other assets like Cardano and Solana.
Users can stake their Lido Staked ETH (stETH) on DeFi sites to gain additional profits for a 10% commission. Lido also assesses a 10% fee to its customers.
This explains the shift experienced gamblers made over time to platforms with bigger potential rewards. Experts predict that when ETH is released from the Beacon Chain owing to the Shapella update, activity on liquid staking sites like Lido will drastically increase.
