Ethereum staking deposits have seen a slight decline in recent weeks, with regulatory pressure and the upcoming Shapella upgrade being cited as the primary factors.

On April 9, Glassnode, an on-chain analytics provider, released data indicating that deposit activities are low due to the SEC’s increased crackdown on staking, despite no official legislation from Congress classifying ETH as security. Additionally, the Shapella hard fork scheduled for April 12 has caused some uncertainty among stakers.

Lido, a liquid staking platform, has gained market share at the expense of centralized exchanges like Coinbase, Binance, and Kraken.

Lido currently dominates deposit inflows, accounting for almost a third of the total amount of ETH staked. Lido takes a 10% commission and offers the potential of earning additional yields on DeFi platforms through its staking token stETH.

As Ethereum staking continues to evolve, analysts predict that liquid staking platforms like Lido will see a boost after the release of ETH from the Beacon Chain following the Shapella upgrade. Currently, there are 18.1 million ETH staked in total, valued at around $33.7 billion, representing 15% of the entire supply.