Liquid staking platforms have encountered a notable downturn in Ethereum reserves over the past fortnight, with approximately 60,000 ETH, valued at over $198 million, being withdrawn. Notably, Lido emerged as the primary contributor to this reduction, pulling out 40,000 ETH.

A Snapshot of the Liquid Staking Sector: Withdrawal of $198 Million Ethereum in 14 Days

Liquid staking, a method for earning rewards on cryptocurrency assets, has witnessed a decline in activity. As of April 15, 2024, there were 27 distinct liquid staking platforms collectively holding 13.15 million ETH. However, this figure has dwindled to 13.09 million ETH within a fortnight, amounting to a total value of $43.01 billion. Lido maintains its position as the dominant player, boasting holdings of 9.35 million ETH, representing 71.41% of the total market share.

Substantial Outflow from Liquid Staking Platforms: Lido Leads the Exodus

Two weeks ago, Lido's holdings stood at 9.39 million ETH, but they have since decreased by 40,000 ETH. In contrast, Rocket Pool witnessed a minor uptick from 1.13 million to 1.14 million ETH during this period. Binance Pool also experienced a slight increase, rising from 896,355 to 896,406 ETH by Sunday. However, Mantle experienced a reduction, shedding approximately 13,001 ETH since April 15, leaving them with 489,892 ETH.

Additionally, Swell's holdings decreased from 216,120 ETH to 213,165 ETH, while Frax's platform also observed a decline. Despite Rocket Pool and Binance Pool adding 10,000 ETH each to their holdings, the sector overall faced a significant outflow of 60,000 ETH over the past two weeks, valued at over $198 million. Since April 1, the liquid staking ecosystem has witnessed a total withdrawal of 440,000 ETH, equivalent to $1.45 billion.

In summary, the recent reduction in Ethereum reserves across liquid staking platforms, spearheaded by Lido, underscores the volatility and evolving dynamics within the cryptocurrency sphere.