Over the past 18 days, 27 distinct liquid staking derivatives (LSD) protocols have experienced withdrawals amounting to approximately 50,000 ether, valued at $146.72 million. The most significant reductions occurred in the LSDs Swell and Mantle, with Swell’s ether holdings decreasing by 23,078 ether since April 28, 2024.
Liquid Staking Market in Flux: Withdrawals Hit Swell and Mantle, Reshuffling Landscape
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LSD Protocol Reductions Continue Despite Minor Gains for Top LSDs
Ethereum-based liquid staking derivatives, known as LSDs, have seen another round of reductions. Eighteen days ago, on April 28, 2024, these 27 LSDs collectively held 13.09 million ether. As of today, that figure has dropped to 13.04 million. Notably, Lido did not contribute to the losses this time, as its cache, which represents 71.74% of the market share, slightly increased from 9.35 million to 9.36 million ether.
Rocket Pool also saw a slight increase, climbing from 1.14 million to 1.15 million ETH. Binance’s Staked ETH protocol rose marginally from 896,406 to 896,471 ETH, while Mantle‘s holdings dropped from 489,892 ETH to 476,223 ETH, resulting in a loss of 13,669 ETH from Mantle. Swell, which was once the fifth largest LSD, has now fallen to the sixth position after losing 23,078 ETH.
On April 28, Swell held 213,165 ETH, but 18 days later, its holdings decreased to 190,087 ETH. Meanwhile, Frax ETH has moved from the sixth largest LSD to the fifth, with its holdings rising from 202,497 ETH to 203,613 ETH. Although the leading LSDs saw modest inflows and some smaller players experienced increases, the overall market still saw a reduction of 13,253 ETH during the 18-day period.
Despite Lido and a few other top LSDs maintaining or slightly increasing their holdings, the LSD market appears cautious. While smaller protocols made minor gains, the majority of them continued to lose ETH, indicating a possible waning confidence in the market’s timing. After weeks of steady reductions, the LSD consolidation period could suggest a period of adjustment within the ether-based liquid staking ecosystem.
What do you think about the latest LSD protocol reductions? Let us know what you think about this subject in the comments section below.
