The LSDFi sector has experienced significant growth this year, with a 5,870% increase in total value locked since January. This growth can be attributed to ETH holders choosing to stake their assets rather than liquidate them. Despite the ability to withdraw ETH with the Ethereum Shapella upgrade, the LSDFi sector has continued to expand. LSD protocols now account for 43.7% of the total ETH staked, with Lido being the largest player in the market. The statistics show that ETH holders prefer to re-stake for better yield opportunities rather than sell their assets after withdrawing. The LSDFi sector has seen a surge in total value locked, reaching over $900 million across the top 10 protocols (excluding Lido). This represents a significant increase compared to the contraction in total decentralized finance TVL over the same period. The average yield for LSD protocols since January has been 4.4%, although this is expected to decline as more ETH is staked. Currently, there are 27.6 million ETH staked, valued at approximately $43.4 billion. Recently, Diva, an LSDFi platform, has gained attention for its “vampire attack” on Lido, attracting users and liquidity by offering higher incentives. Diva’s TVL has surged 650% since the beginning of October.
