Rise in Ethereum Staking Still Carries Major Lido Risk: Here's Why

Ethereum staking is gaining immense popularity, but the growing dominance of Lido DAO raises significant concerns. Critics worry that if too much Ethereum is staked with Lido, that could harm the network. But why is Lido's success potentially problematic? The concern is that if Lido goes over 33% of total staked ETH, it could exert undue influence over the Ethereum network.

Lido's Dominance: Encroaching on Critical Thresholds

Lido's success has led it to capture 32% of all staked ETH, encroaching on Ethereum’s first major consensus threshold and causing consternation for some. This concentration of staking power raises questions about decentralization and potential vulnerabilities.

The 33% Threshold: What's the Big Deal?

The Ethereum network's security and stability rely on a diverse and decentralized staking landscape. Reaching the 33% threshold isn't just an arbitrary number; it signifies a point where Lido, or any entity controlling that percentage of staked ETH, could potentially disrupt consensus mechanisms.

Danny Ryan's Warning: Critical Consensus Thresholds

Recently, an Ethereum developer, Danny Ryan, posted an article on how some firms above “critical consensus thresholds” pose a risk to the ecosystem. Ryan stated, “ With” entities controlling a significant portion of staked ETH, the risks of censorship and network manipulation increase. This highlights the urgency of addressing Lido's growing market share.

Date of Concern: Potential Future Impacts

While the current date is not a doomsday scenario, the continued growth of Lido's stake raises concerns for the future. Experts, as of 28 de sept. de 2025, are still actively discussing and analyzing the potential ramifications if this trend continues unchecked.

Mitigating the Lido Risk: What Can Be Done?

Addressing the potential risks associated with Lido's dominance requires a multi-faceted approach. This includes exploring alternative staking solutions, promoting greater decentralization within the Ethereum ecosystem, and actively monitoring the evolution of Lido's market share. Staying informed and contributing to the ongoing dialogue is crucial for the long-term health and security of Ethereum.