Ethereum Supply Cannot Fully Support Crypto. In 10% of the market the second largest cryptocurrency total supply was staked and locked into smart contracts. Although the on-chain data is interesting, it is worth highlighting one important detail: 80% of the staked supply is controlled by the same company, and that is a big problem.
The total Ethereum reserves are currently at 16 million, with more than 91,000 depositors and almost half a million unique supporters. The big data behind Ethereum staking is not reassuring when looking at the distribution of assets in the network: 4.6 million ETH are invested in Lido Finance, making it the largest and most on the network.
“Lido Controls 80% of Staked Ethereum Supply, Causing Concerns for Traders and Companies”
Such a large ownership of Ethereum in the hands of one company can cause serious problems for traders and companies. Unfortunately, the problem is not only that Lido controls 80% of the staked supply. This problem depends on the type of Lido money and investment. In exchange for “real” staked and illiquid
Ethereum, users receive liquid stETH tokens that are expected to be invested in real cryptocurrency at a ratio of 1:1. However, the indicator is useless, because it is only an indication of some value at risk, and in the case of volatility spikes, the current liquid of the property is often become a problem. It causes disruption and huge losses among investors.
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