ETH Staking Silent War Sounds the Alarm, 270,000 wstETH at Risk, Lido's Struggles Hide ETF Underbelly
Recent on-chain data has pierced the veil of the staking ecosystem, with stETH being withdrawn en masse from Lido, while the lending protocol Figment is crazily eating into its market share. More intriguingly, Figment's rise is likely deeply tied to the ETH ETF staking collaboration.
As traditional capital seizes the opportunity through compliant channels, Lido, the veteran in staking, is quietly losing its influence.
However, more fatal than the reshuffling of power dynamics is the collateral liquidation crisis. On-chain data shows that 32% of stETHwstETH is locked as collateral in lending protocols, with 278,000 tokens already stepping into the high-risk zone with a health factor of 1-1.1.
This means that as long as there’s a slight price fluctuation between stETH and ETH, such as worsening decoupling, lending protocols could instantly trigger mass liquidations. Imagine this death spiral: liquidation pressure → stETH price plummets → more collateral liquidations → ETH liquidity is drained. At that point, not only will lending protocols become bad debt graveyards, but the very foundation of ETH’s price could be uprooted.
Lido losing market share and Figment seizing the opportunity is essentially a transfer of staking power. Figment is riding the ETF wave to gain an edge, but it leaves the risks to lending protocols and retail investors. The decoupling risks of stETH are no longer just a pricing issue for a single asset; they are a litmus test for the trust in the entire ETH staking ecosystem, and the hidden costs behind the ETH ETF frenzy.
Now looking at the excitement of ETH ETFs, do you still think it’s a sure profit? Consider what happens when a wave of 270,000 wstETH liquidations hits—can ETH withstand it? Will Figment's ambition become the final blow to the staking market?
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