Growth in Ethereum staking deposits has declined due to regulatory pressure and the upcoming Shanghai-Capella (Shapella) hard fork, Glassnode experts have noted.
Deposit trends by staking providers have exhibited a clear shift over time with Kraken, Binance and Coinbase jousting for deposit allocations across the Beacon Chain’s early days.
As the dust settled between the three giants, it was Lido who emerged victorious, continuing to… pic.twitter.com/yp50NWQ5XJ
— glassnode (@glassnode) April 9, 2023
The developers have scheduled an upgrade for April 12th. In March, the Ethereum team hardforked Shapella on the Goerli testnet. Prior to that, I activated the update on the Sepolia test network. The hard fork includes changes to Ethereum consensus levels and execution. Its main goal is to open access to the withdrawal of ETH from staking.
Glassnode experts recalled that centralized sites like Kraken, Binance and Coinbase competed for the influx of deposits into staking “from the early days of Beacon Chain.” However, they lost a significant market share, while the Lido DeFi platform gained it.
According to the Dune Analytics dashboard, there are 18.2 million ETH locked in staking — more than 15% of the coin supply. Almost 102,000 addresses have made deposits.
Lido accounts for over 26% of the total staking cryptocurrency, Coinbase accounts for about 6%, and Kraken accounts for 2.3%.
In February, Kraken settled allegations from the US Securities and Exchange Commission (SEC) regarding the exchange’s staking service. The agency qualified the service as an unregistered offering of securities. The crypto platform agreed to close the program and pay $30 million as a fine.
In March, the regulator made similar claims against the largest US exchange Coinbase.
SEC Chairman Gary Gensler suggested that all Proof-of-Stake tokens could be considered securities under US law.
Source: CryptoNewsHerald.com
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