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Significant ETH Outflows Recorded at Liquid Staking Platforms. Is It Time to Switch to Non-Custodial Crypto Staking?

Overview of the current liquid staking landscape

The liquid staking sector has observed a notable decline in Ethereum holdings, with 60,000 ETH withdrawn in just two weeks.

Key takeaways:

  • Lido dominates the recent reductions in the liquid staking market.
  • The sector has experienced a total outflow of 440,000 ETH since the beginning of the month.

The liquid staking derivative (LSD) sector has witnessed a substantial outflow of Ethereum (ETH) recently, with a total of 60,000 ETH valued at over $198 million being withdrawn in the past two weeks alone. As of mid-April 2024, the 27 LSD platforms collectively held 13.09 million ETH, down from 13.15 million, with a current market valuation of approximately $43.01 billion. 

Lido, the dominant player in this market, has seen its holdings decrease from 9.39 million to 9.35 million ETH, reflecting a loss of 40,000 ETH and maintaining a 71.41% market share.

Detailed analysis of platform performances

While Lido reported the largest reduction, other platforms showed mixed results. Rocket Pool noted a slight increase in its holdings, from 1.13 million to 1.14 million ETH. Binance Pool also recorded a marginal gain, increasing by 51 ETH to 896,406. Conversely, Mantle and Swell experienced declines in their holdings, with Mantle dropping by 13,001 ETH and Swell by 2,955 ETH. 

Despite some platforms experiencing gains, the overarching trend in the LSD sector points to a significant net outflow, culminating in a total withdrawal of 440,000 ETH worth approximately $1.45 billion since the beginning of April.

Consider switching to the non-custodial ETH staking provider 

Considering the recent outflows in the Lido Staking Derivative (LSD) sector, investors seeking an alternative staking option might consider a non-custodial provider for better security and stability. 

CryptoStake offers a user-friendly platform to stake ETH with a competitive annual percentage yield (APY) of 3.7%. The minimum staking amount on CryptoStake is 32 ETH, standard for Ethereum validator staking. CryptoStake presents a compelling opportunity to earn passive income on your ETH holdings in a secure environment at times when liquid staking is on the decline.