Ethereum Staking Landscape Shifts Amid Lido's Decline

The Ethereum staking landscape has seen significant shifts in recent months. Lido's market share has declined from 32.3% to 24.4%, reducing the concentration of power that researchers had feared would exceed 33%. Figment, on the other hand, has increased its stake to 5.8% after adding 344,000 new stakers in a month.

Bitmine Immersion Technologies holds 4.8% of the total supply with its 4.9 million ETH stake. However, it reported a three-month net loss of $83.6 million, including $11.9 million in operating losses and $92 million in derivative contract losses. Its staking revenue reached $45.7 million for the period ending May 31, 2026, accounting for 98% of its total revenue.

The Pectra upgrade has also changed validator operations, allowing institutions to consolidate many 32 ETH validators into fewer, larger positions due to a maximum effective balance increase from 32 ETH to 2,048 ETH. EIP-7251 introduced this change on May 7, 2025. EIP-6110 reduced deposit processing time from 13 hours to 13 minutes.

Figment has seen institutional ETH staking demand double after the SEC said in May that staking does not constitute a securities activity. The market is diversifying as specialized service models compete with liquid staking protocols. JPMorgan's blockchain infrastructure expansion through its Onyx division challenges BNY Mellon, which manages the iShares Bitcoin ETP.

BNY maintains an 83% market share in U.S. spot crypto ETPs. Figment maintains a 99.9% participation rate and recorded zero double-sign slashing events in Q1 2026. The network saw 33 slashing events during that same period.