Lido's Dominance Erodes as Figment Gains Institutional Traction

Lido's dominance in the Ethereum staking ecosystem has begun to wane as Figment gains traction among institutional investors. In the last month, Lido lost 285,000 ETH, while Figment added 344,000 ETH to its holdings.

This shift brings Lido's market share down to 24.4%, a significant decline from its peak of 32.3% in late 2023. The protocol now sits below the 33% threshold that researchers and Ethereum core developers previously labeled as a point of dangerous concentration for network health.

The decline in Lido's dominance is seen by some as a sign of a maturing, diversified staking ecosystem. With institutional-grade operators, community-run decentralized protocols, and exchange-hosted staking products emerging, the market no longer relies on a single provider to maintain network health.