Lido [LDO] has lost a significant chunk of Ethereum's [ETH] staking market share to Ether.Fi

Lido [LDO] has lost a significant chunk of Ethereum's [ETH] staking market share to Ether.Fi, with analysts speculating that a positive SEC stance on DeFi could help revive the staking platform.

Lido [LDO] has lost a significant chunk of Ethereum’s [ETH] staking market share to Ether.Fi, with analysts speculating that a positive SEC stance on DeFi could help the platform.

In the first half of 2025, Ether Fi’s staked ETH rose 30% while the biggest staking platform declined 9%, according to Tom Wan, Head of Data at Entropy Advisors.

Source: Dune Analytics

In the past month alone, Ether Fi led with 286.3K ETH, while Lido saw 182K ETH outflows.

Surprisingly, this divergence is happening as the overall ETH staking hit a record high, underscoring investor confidence in ETH.

Surprisingly, this divergence is happening as the overall ETH staking hit a record high, underscoring investor confidence in ETH.

Assessing LDO recovery potential

On the token market performance, LDO could offer a massive upside in case of a hated rally.

Notably, LDO dropped 75% in early 2025, slipping from $2.5 to $0.6. Although it recovered 60% in Q2, only 16% (160 million LDO) of the total supply was in profit.

Notably, LDO dropped 75% in early 2025, slipping from $2.5 to $0.6. Although it recovered 60% in Q2, only 16% (160 million LDO) of the total supply was in profit.

Source: Glassnode

But about 840 million LDO supply was still in loss. Should they wait to break even or turn a profit, the token’s recovery may extend.

Further evaluation showed that the main on-chain resistance was $1.5-$1.7, according to IntoTheBlock.

Around this zone, about 5.5K addresses bought 167 million LDO, making it a key break-even point for a significant part of the supply.

Around this zone, about 5.5K addresses bought 167 million LDO, making it a key break-even point for a significant part of the supply.

Source: IntoTheBlock

At press time, LDO traded at $0.96, meaning a resilient recovery to $1.5 could offer a potential 53% gain.

However, such a lift-off could offer relatively better returns on Ether Fi compared LDO. According to the Ether Fi/Lido ratio, Ether Fi outperformed LDO by 130% in May.

However, such a lift-off could offer relatively better returns on Ether Fi compared LDO. According to the Ether Fi/Lido ratio, Ether Fi outperformed LDO by 130% in May.

The ratio has now formed a bull flag pattern, implying a potential 57% relative Ether Fi gain over LDO.