Kaiko: The ETH market for pledging has cooled down, and the supply has now stabilized.

Odaily Planet Daily According to a recent report by Kaiko, the ETH staking market will cool down in 2024. Since August, the average queue time for ETH validators has been less than a day, and it has rarely exceeded four days in the whole year - significantly shorter than the peak of 45 days in June 2023. Adding to this situation is the decline in ETH staking rewards. Currently, the ETH staking yield is lower than the yields offered by other major L1 protocols (such as Cosmos, Polkadot, Celestia, and Solana), whose rewards range from 7% to 21%. Although the inflow of staking has begun to decrease, the supply of Ether from the largest Ethereum staking participants has already stabilized. The supply of Lido staked ETH and stETH has remained relatively stable this year, averaging 9.6 million ETH. This reflects a slowdown in the total amount of ETH deposited into the beacon chain contract, which increased by about 5.7 million ETH this year, after nearly doubling last year. Lido's STETH accounts for about 28% of the total staked ETH market, only rising by 5% so far this year, far below the 90% in 2023. STETH is still widely used as Collateral in Decentralized Finance, and Lido is the largest Decentralized Finance protocol ranked by TVL. However, with the emergence of new projects with higher yields such as Spark and Morpho, as well as alternative stake solutions like ether.fi, competition between protocols is intensifying. The percentage of (w)stETH deposited on the Aave lending protocol as a proportion of the total supply of stETH on the Ethereum network has decreased from 20% to around 13% in 2023, remaining relatively stable this year. In addition to the competition at the external protocol level, stETH, as Collateral in the Decentralized Finance protocol, also faces increasingly fierce competition. As of last week, the share of stETH deposits on Aave has dropped from 46% at the beginning of the year to 27%.