Data from Glassnode shows the demand for Lido Staked Ethereum (stETH) has observed a sharp 142% growth since May 2022.

Demand For stETH Has Far Surpassed That Of Ethereum Since LUNA Collapse

Since the arrival of proof-of-stake (PoS) on the Ethereum blockchain, liquid staking projects have cropped up, which let users stake their ETH through them, and in return, they receive tokens called liquid staking derivatives.

With these derivatives, users can continue to earn staking rewards while still having mobility over their ETH, meaning they can participate in other DeFi activities with them. This makes the prospect of staking this way more lucrative for many investors.

The largest platform in the sector is Lido, which provides its users with stETH as a representation of the coins they have …