2 Million ETH Staked In May So Far, New ATH

Interest In ETH And LSDs Boomed After Shapella

Indeed, the inflow of tokens into the beacon chain and liquid staking services like Lido Finance signals strong overall confidence” in both ETH and the Ethereum network by users.

Enabling withdrawals has also lowered the risks associated with staking into liquid staking derivatives (LSDs), said Nansen data scientist Martin Lee.

With withdrawals enabled, there’s lower odds of seeing de-pegs between the liquid staking tokens and ETH itself since withdrawals can be facilitated by official mechanisms instead of the psuedo mechanism introduced by swapping stETH with ETH in Lido’s case.

Crypto users are also incentivized to stake their ETH as opposed to holding the asset on exchanges or self-custody devices like hardware wallets since the former could generate yield and returns.

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