Ethereum (ETH) has recently seen a significant withdrawal at Lido DAO, leading to a decrease in the price of Wrapped stETH Token.
The slow processing of ETH withdrawals has reached a two-year high, along with the decline in wstETH price reflecting the shifting of cash flows and ETH usage patterns in DeFi.
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Lido DAO has recorded a record amount of ETH waiting to be withdrawn, with over 228,992 ETH in the queue and an average waiting time of 71 hours.
The Wrapped stETH Token has dropped in price from a peak of nearly $4,600, actively trading with record volumes on Uniswap.
Lido's ETH staking market share has decreased due to competition from Binance; however, Lido remains a crucial DeFi infrastructure with plans to launch V3 and collaborate with BitGo.
How is Lido DAO handling the large amount of ETH withdrawals?
Lido Finance's CEO confirmed that the average ETH withdrawal time is currently 71 hours, with 228,992 ETH waiting to be unstaked, a record high in the past two years. This is a consequence of ETH prices exceeding $3,800, prompting whales and retail investors to take profits.
Risk management and ensuring liquidity for the network are Lido's top priorities as withdrawal volumes surge.
Stani Kulechov, CEO of Lido Finance, 7/2025
Users with ETH locked in at lower prices are looking to take advantage of the current market opportunity to free up assets and realize profits. Lido still maintains locked capital of over $34 billion based on actual ETH value, providing an annual yield of 2.8% and issuing stETH and Wrapped stETH Tokens to serve liquidity and diverse DeFi activities.
Why has the price of Wrapped stETH (wstETH) fallen from its recent peak?
DeFi analysts report that Wrapped stETH dropped 2.4% to $4,446.47, retreating after reaching a peak above $4,600 amid ETH adjustments. Nevertheless, wstETH still recorded daily trading volumes of up to $148 million through Uniswap.
This token is often traded at a higher tendency than ETH due to its equivalent value plus staking yield. Traders can swap wstETH for stETH and unstake directly through the Smart Contract to optimize profits. The fact that wstETH accounts for 1.28% of total ETH locked at Lido indicates that the selling trend may not have a significant impact on the overall ecosystem but signals a change in ETH utilization.
How has Lido's staking market share decreased over the past year?
Data from DeFiLlama shows that Lido's staking market share has decreased from over 75% to 62.8% in the past two years, primarily due to the substantial increase of Binance staking from below 3% to over 20%.
Mr. Jordan Kratz, Blockchain expert, states:
Market competition for staking is becoming increasingly fierce, but Lido still plays a central role due to its robust infrastructure integration and ability to serve institutional clients.
Jordan Kratz, Blockchain Expert, June 2025
Lido focuses on expanding the application of stETH for institutions, supporting ETF passive income and managing ETH treasury. Over the past year, despite slower growth rates, Lido still generated high revenue per user and partnered with BitGo - a trusted digital asset manager in the U.S. to enhance the legality and security of its staking infrastructure.
What breakthroughs are expected from Lido V3?
According to the development plan, Lido V3 aims to improve scalability and flexibility in staking, creating attractive conditions for capital inflow from large institutions. The current unstaking event is viewed as a temporary fluctuation as 30% of ETH remains locked on Beacon Chain, and long-time whales rarely withdraw en masse.
Lido V3 will be an advanced staking mechanism, helping to increase reliability and attract new users in the coming months, solidifying its position as one of the key protocols in the Ethereum ecosystem.
Frequently Asked Questions
What is Lido DAO and what role does it play in ETH staking?
Lido DAO is the largest ETH staking protocol, allowing users to stake ETH to receive stETH as a representation of assets, while maintaining liquidity on DeFi to earn profits.
Why has the amount of ETH waiting to be withdrawn at Lido surged?
The rise in ETH prices has caused investors, both whales and individuals, to withdraw to take profits from previously staked ETH at lower prices.
How does Wrapped stETH differ from regular stETH?
WstETH is the wrapped token of stETH, immutable and suitable for DeFi activities, facilitating easier trading on DEX.
How is Lido's market share in ETH staking changing?
Lido is losing market share to Binance staking but still maintains a leading position with nearly 63% of total ETH staked.
What benefits does Lido V3 bring to investors and the market?
Lido V3 promises to improve staking efficiency, expand features for users, and attract institutional capital to increase liquidity for Ethereum.
Source: https://tintucbitcoin.com/wrapped-steth-giam-gia-ky-luc-unstake/
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