Decentralized Autonomous Organization Lido commands 80% Ethereum 2.0 staking derivatives market share, with staked Ether surpassing 1 million, equivalent to $3.7 billion.
Staking has led to the rise in Ethereum 2.0 staking derivatives market with staked ETH tokens that can be used in decentralized finance applications as collateral for additional yield. The aim is to offer stakes liquidity as their tokens remain tied in Beacon Chain.
The Beacon Chain does not allow withdrawals until Ethereum migrates to a proof-of-stake blockchain away from the proof-of-work, which is considered not to be energy efficient.
Staking is a process of investing in Ethereum that lets users lock funds into a future upgraded blockchain model that is currently running parallel, called Beacon Chain. Investors who put their Ether into the Beacon Chain and earn an annualized yield of more than 5%.
Source: Coindesk
