Binance Staked ETH (wBETH) has shaken up the dominance on the Ethereum liquid staking market. In fact, it currently enjoys a whopping 20% of the overall market share. Much of this growth is due to Binance’s large distribution network and easy-to-use platform. The Ethereum liquid staking ecosystem today has more than $45 billion in deposits.

Lido still controls the market Ethereum liquid staking market with a whopping 63% market share. Still, the dramatic growth of Binance is a sign that the competitive landscape is changing. In fact, there are more than $9.3 billion worth of Binance Staked ETH in circulation alone.

Lido's Reign in Liquid Staking

Lido, which has had a stranglehold on the liquid staking market since early 2021, most importantly, it has cemented itself as the home of DeFi users’ first choice. Its stETH token is now natively accepted and integrated across multiple popular DeFi platforms and protocols. As of today, Lido is indeed the largest Ethereum liquid staking provider.

As a result, Binance Staked ETH has experienced extraordinary growth in that time. Its circulating supply increased by almost 18% in just the past 30 days. This increase is primarily due to Binance’s extensive distribution network, which makes it easy to stake and redeem Ethereum. With just one click through the Binance app, users can start staking and redeeming Ethereum seamlessly.

"I expect Lido to continue its overall dominance," - Abdul Rehman

Binance's Rapid Ascent

For many trading firms, Binance’s platform provides an unparalleled level of convenience and capital efficiency. This helps draw in a wider variety of users, particularly newbies to DeFi and those with larger portfolios to manage.

The massive increase in Binance Staked ETH coincides with a period where institutions are diving more into Ethereum investments. This overwhelming surge of capital is only accelerating the growth of the liquid staking industry.

"For many users, especially those newer to DeFi or managing larger portfolios, that convenience and capital efficiency are hard to beat," - Mena

Market Dynamics and Institutional Investment

Binance Staked ETH has experienced truly extraordinary success. All these details highlight how UX and accessibility are becoming absolutely critical differentiators within the nascent and competitive liquid staking market. 90% of Binance Staked ETH is actually just held by Binance and they are staking it on behalf of their users.

"wBETH’s DeFi integrations are a secondary distribution, while the primary distribution is on the Binance app itself," - Rehman

Coinbase’s Wrapped Staked ETH has $459 million worth in circulation. Peter Thiel’s 9.1% stake in BitMine Immersion Technologies, which last year pivoted into an Ethereum treasury company.

"It’s embedded into a full-stack ecosystem where users can trade, borrow, lend, and deploy capital efficiently, all within a single platform," - Mena

Coinbase's Wrapped Staked ETH has $459 million worth in circulation. Peter Thiel holds a 9.1% stake in BitMine Immersion Technologies, which pivoted into an Ethereum treasury company.