Lido's dominance in Ethereum staking has decreased significantly, dropping to a record low of 24.4% from 32.3% in late 2023. This shift signals a maturing staking ecosystem as competition intensifies, with various providers catering to both institutional and community-run projects. Figment emerged as the largest gainer of new stakers over the past month, adding approximately 344,000, while Lido lost around 285,000 stakers. The diversification of Ethereum's staking market may enhance the blockchain's overall health, reducing concerns over a single provider's dominance. Institutions are increasingly engaging with digital assets, and Figment has been successful in onboarding a larger institutional client base amid evolving regulatory clarity from the SEC concerning liquid staking. The industry is gradually moving towards a more competitive landscape, favoring specialized services over monolithic providers. Darren Langley, GM of competitor Rocket Pool, noted that community efforts have aimed to prevent Lido from achieving a one-third dominance in staking, emphasizing the need for decentralization in this rapidly evolving sector.

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