Ethereum Shanghai Upgrade Spurs Rotation to DeFi From Centralized Exchanges
- Lido, Rocket Pool and Frax have been growing since Shanghai
- Lido will enable withdrawals in May; Binance on April 19
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An anticipated shift in market share among providers of crypto staking services since Ethereum underwent a major software upgrade last week has begun, with decentralized-finance applications appearing to be the major beneficiaries.
The Shanghai update, also referred to at times as Shapella, enabled investors to queue up to withdraw Ether tokens they had pledged to help operate the blockchain network in return for rewards, a process called staking. So-called liquid-staking providers such as Lido, Rocket Pool and Frax Ether also let holders use Ether-based derivatives in a slew of DeFi trading, lending and borrowing apps.