Lido, which has an estimated 80%+ market share in Ethereum liquid staking, raises $70M from Andreessen Horowitz; 76K wallets stake assets worth $10B+ on Lido (Anita Ramaswamy/TechCrunch)
Lido, a leading player in the Ethereum liquid staking space, has recently closed a 70 million dollar series A funding round led by Andreessen Horowitz. This funding round is set to help the company solidify its place at the top of the blockchain industry, as well as to move towards a proof-of-stake (PoS) system this summer.
What Is Liquid Staking?
Liquid staking is a form of blockchain validation that allows users to stake their assets with wallets and earn rewards for doing so. This type of validation system is becoming increasingly popular due to its scalability, accessibility, and efficiency compared to traditional proof-of-work (PoW) systems like Bitcoin.
In addition, since it does not require specialized hardware such as graphics cards or ASICs, it can be accessed by virtually anyone with an internet connection and enough funds to buy or stake tokens.
Lido’s Dominance in the Ethereum Liquid Staking Space
According to reports, Lido has achieved an estimated 80%+ market share in Ethereum liquid staking. The platform boasts over 76K wallets that have staked over 10 billion dollars worth of assets on its platform making it one of the most successful companies in this sector right now.
With its new funding from Andreessen Horowitz and plans to switch towards PoS this summer, it looks like Lido will become even more dominant in this space soon.
Implications of the Funding Round
The funding round marks yet another major success story for Lido and serves as a sign that large players such as Andreessen Horowitz are taking note of the immense potential that liquid staking holds for the future of blockchain technology.
It also highlights just how much progress has been made since Ethereum first switched from PoW to PoS back in April 2020 proving that PoS validations systems can be used effectively at scale and providing hope for further developments in the future.
Conclusion
It’s clear that Lido’s recent investment from Andreessen Horowitz will help them continue their dominance in the Ethereum liquid staking space and pave way for further innovation within decentralized networks around the globe.
With investors backing projects such as these and with continued support from developers worldwide, there’s no doubt that we’ll see more success stories like these come out of the blockchain industry soon.
