RocketPool takes a page off Lido Finance’s playbook with liquid staking. Here’s how…
ambcrypto.comLido Finance has been enjoying immense success thanks to its liquid staking mechanism. As a result, other staking platforms such as RocketPool are starting to notice and emulate Lido’s staking model.
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A recent Messari analysis took into consideration the level of growth that Lido and its competition have been enjoying since November 2020.
Based on the analysis, RocketPool achieved significant growth and dominance, coming in third after Lido and Coinbase. The Messari report also noted that the reason behind RocketPool’s growth was because it had adopted similar strategies to those of Lido Finance.
<p lang=«en» dir=«ltr» xml:lang=«en»>.@LidoFinance has established itself as the market leader in liquid staking protocols, contributed to by its attractive incentives.New entrants like @RocketPool are adopting similar strategies, using their native $RPL token to increase market share and liquidity. pic.twitter.com/j9iiLAJe7f
— Messari (@MessariCrypto) April 10, 2023
Liquid staking platforms are bound to become more popular over time. This is because of the risks that come with centralized staking platforms.
History has so far proved that centralized staking platforms are hot targets for malicious attacks and theft since they operate on a custodial mechanism.
Lido Finance already has a strong lead thanks to its first-mover advantage. This is reminiscent of Bitcoin’s [BTC] comparison with Ethereum [ETH] where the latter was playing catch up while the former is in its own league. Similarly, RocketPool will likely struggle to get to Lido’s current level.
Perhaps the best way to establish whether RocketPool can compete effectively with Lido is to look at its stats since the
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