Research
Pro
Valuations
DeFiLayer-1

Overdone Stake

Sep 22, 2023 ⋅  6 min read

Fact - ETH staking continues to see greater adoption; its staking ratio is now at 22%. Problem - High staking, high staking through liquid staking providers, and high staking through Lido have potentially negative implications for Ethereum’s decentralization and economic security. Solution - Limit staking growth through a protocol upgrade; user activism and incentives can limit Lido’s staking share. Impact - Higher potential for outperformance for Lido’s competitors.

Upgrade to Messari Pro to read this report

Pro Subscription

Professional-grade Research Reports covering the latest trends and assets in the crypto space

Fundraising Screener to track trends across 14,000+ crypto funding rounds, 500+ M&A Deals, and 10,000+ investors

Unlocked Enterprise Research Reports 90 days after they are published

Full access to advanced asset screening with custom filters, queries, and metrics

Real-time Governance Tracker covering proposals from their initial stages through votes and implementation

Advanced AI Digests with all of the features in Lite plus Key Developments for major protocol changes

Upgrade to Pro

Already a member? Sign In

Kunal previously worked in equity research and now considers himself a financial analyst in crypto. He specializes in valuation and bottom-up analysis for Layer-1 and DeFi protocols because he has yet to learn of a way to value NFTs.

About the author

Kunal previously worked in equity research and now considers himself a financial analyst in crypto. He specializes in valuation and bottom-up analysis for Layer-1 and DeFi protocols because he has yet to learn of a way to value NFTs.