Written by: TechFlow
On August 4th, Lido's co-founder Vasiliy Shapovalov announced a 15% staff reduction,
At a time when almost everyone believes an institutional-driven ETH bull market is imminent, and the SEC shows signs of approving the ETH spot ETF staking application, this news clearly contradicts expectations.
As one of the leading projects in the ETH staking track, Lido might be considered the biggest beneficiary of SEC's approval of an ETH staking ETF, but is this really the case?
Lido's layoffs are not just a simple organizational adjustment, but more like a microcosm of a turning point in the decentralized staking track.
The official explanation is "for long-term sustainability and cost control", but what it reflects is a deeper industry change:
As ETH continuously flows from retail investors to institutional hands, the survival space for decentralized staking platforms is being increasingly compressed.
Let's go back to 2020 when Lido just launched, and ETH2.0 staking was just beginning. The 32 ETH staking threshold deterred most retail investors, but Lido's innovative liquidity staking token (stETH) allowed anyone to participate in staking while maintaining fund liquidity. This simple and elegant solution helped Lido grow into a staking track giant with over $32 billion in TVL within just a few years.
However, the changes in the crypto market over the past two years have broken Lido's growth myth. As traditional financial giants like BlackRock begin to layout ETH staking, institutional investors are reshaping this market with their familiar approach. Several key players in this institution-driven ETH bull market have proposed their own solutions: BMNR chose Anchorage, SBET chose Coinbase Custody, and BlackRock and other ETFs all adopt offline staking.
Without exception, they prefer centralized staking solutions compared to decentralized staking platforms. Behind this choice are compliance considerations and risk preferences, but the ultimate result points to one thing: the growth engine of decentralized staking platforms is "shutting down".
Institutions go left, decentralized staking goes right
To understand the institutional selection logic, we need to first look at a set of data: From July 21, 2025, the amount of ETH queued for unstaking began to significantly exceed the amount entering staking, with the largest difference reaching 500,000 ETH.
Meanwhile, ETH strategic reserve companies like BitMine and SharpLink are continuously purchasing ETH in large batches. Currently, the total ETH held by just these two companies exceeds 1.35 million ETH.
Wall Street institutions like BlackRock have also been continuously purchasing after the SEC approved the ETH spot ETF.
Based on the above data, it can be conclusively determined that: ETH is continuously flowing from retail investors to institutional hands. This dramatic change in ownership structure is redefining the entire staking market's rules.
[The translation continues in the same manner for the rest of the text, maintaining the specified translations for specific terms and preserving the original formatting.]The entry of traditional financial forces will completely change the game rules, and decentralized platforms must find new ways to survive before being marginalized. This may mean more radical innovation, deeper DeFi integration, or—ironically—a certain degree of centralized compromise.
At this moment when the regulatory spring arrives, decentralized staking platforms may be facing not a moment of celebration, but a critical turning point of survival.
Opportunities and Challenges in the ETH Staking Ecosystem
Standing at a key node in 2025, the ETH staking ecosystem is experiencing unprecedented transformation. Vitalik's concerns, regulatory shifts, and institutional entry—these seemingly contradictory forces are reshaping the entire industry landscape.
Admittedly, challenges are real. The shadow of centralization, intensifying competition, and business model impacts could each be the final straw that crushes decentralized ideals. But history tells us that true innovation is often born in times of crisis.
For decentralized staking platforms, the institutional wave is both a threat and a driving force for innovation. When traditional financial giants bring standardized products, decentralized platforms can focus on deep DeFi ecosystem integration; when price wars become inevitable, differentiated services and community governance will become the new moat; when regulation opens doors for everyone, the importance of technological innovation and user experience will become more prominent.
More importantly, market expansion means the pie is getting bigger. When staking becomes a mainstream investment choice, even niche markets can support the prosperity of multiple platforms. Decentralization and centralization need not be a zero-sum game; they can serve different user groups and meet different needs.
ETH's future will not be determined by a single force, but shaped collectively by all participants.
Tides rise and fall, only the adaptable survive. In the crypto industry, the definition of "adaptable" is far more diverse than in traditional markets, and this may be precisely why we should remain optimistic.
