Rapid growth in DeFi-focused Ethereum liquid staking derivatives platforms raises eyebrows By Cointelegraph

June 4, 2023 Alex Rustok



Ether’s (ETH) DeFi activity has declined in the bear market and the sector faces further competition from Ethereum’s annual staking reward of 4%, according to Glassnode analysts. However, a DeFi narrative is building around liquid staking derivative (LSD) tokens that could revive Ethereum’s network activity.

The percentage of gas consumed by DeFi protocols has dropped from 34% in 2020 to 8% to 16% presently, with NFTs commanding the maximum share of 25% to 30%, according to a recent report from Glassnode.

gas usage by transaction type. Source: glassnode
ETH vs DeFi tokens price performance. Source: glassnode
LSDfi total value locked. Source: Dune