stETH new address count has remained the same for the past year.
On the other hand, rETH and SFRXETH have seen an increase in new demand after Shanghai.

The number of new addresses with Lido’s Staked Ether [stETH] remained unchanged over the past year, despite a notable surge in demand for the DeFi token, data from Glasnode revealed.

Read Lido Finances [LDO] Price forecast 2023-2024

According to Glassnode, the daily count of new addresses using stETH fluctuated between 230 and 590 per day, holding steady year-to-date. This suggested that “many new deposits through Lido are being driven by existing stETH token holders increasing their exposure” and not the entry of new entrants into the market.

A look at stETH’s average tokenholder balance metrics revealed that after a temporary decline in average tokenholder balances after withdrawals were enabled for Lido post-Shanghai Upgrade, an upward trend was noted, indicating growth in demand to the token.

However, with the new number of addresses unchanged, Glassnode noted,

“We have yet to see a significant influx of new holders entering the market through these staking mechanisms.”

Conversely, there is a wave of new users of Rocketpool’s staking tokens [rETH] and Frax Finance [SFRXETH] after the Shanghai upgrade. According to data from Glassnode, the number of new addresses using rETH and SFRXETH has increased by 45% and 122%, respectively, since April 12.

Source: Glassnode

Lido remains king

Despite this, Lido’s tenure as the number one liquid staking protocol continues unchallenged. Per from Glassnode recent report,

“Lido stands out as the clear leader in the industry with an offering 16 times larger than that of its closest competitor.”

According to Dune Analytics, Lido’s share of the ETH staking ecosystem has also grown to levels last seen in May 2022. While many expected a drop in Lido’s market share after Shanghai, the opposite was the case.

Since the hardfork upgrade on April 12, the total value of ETH wagered on Lido has increased by 32%.

Source: Dune analysis

While Ether staking on the protocol recovered, there has been a continued decline in ETH staking APR offered by Lido. At the time of writing, it was 3.9, a low last recorded in September 2022.

Source: Dune analysis

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Declining demand for LDO

At the time of writing, LDO was trading at USD 1.92 CoinMarketCap. An assessment of the alt’s price performance on a daily chart revealed weakening accumulation pressures.

The key momentum indicators were in downtrending positions at the time of writing, indicating that the LDO distribution was beginning to overpower accumulation.

Source: LDO/USD, TradingView

This post Lido: Interest in stETH is declining, now what?

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