A recent announcement on April 29 revealed that Lido Finance, known for its liquid staking protocol on Ethereum, has reached a significant milestone of one million validators. Lido Finance aims to simplify staking for individuals with limited funds, allowing them to participate with less than the usual required 32 Ether (ETH).

Currently, Lido Finance accounts for 28.5% of all staked Ether, with an additional 13.6% staked through Coinbase. This rise in liquid staking protocols has provided users with liquidity advantages that were not present in traditional staking methods. By staking Ether with Lido, users receive stETH (Lido Staked ETH) that can be utilized in other DeFi protocols, unlike the tokens which remain locked in traditional staking.

In the DeFi space, the total value locked (TVL) has significantly increased from $36 billion in late 2023 to a peak of $97 billion in early 2024, currently at $92.32 billion. This growth of 65.6% quarter-on-quarter in DeFi TVL can be attributed to asset price hikes and the popularity of liquid staking. Ethereum's TVL has seen a remarkable 71% growth.

Among liquid staking protocols, over $47.7 billion in value has been locked in, with Lido alone contributing $29.9 billion, followed by Rocket Pool at $3.86 billion. This makes liquid staking the most substantial category in DeFi, with a combined TVL of $47.6 billion across 164 protocols.