An in-depth analysis of how major ETH stakers are reshaping the DeFi landscape
Introduction
The Ethereum staking landscape is undergoing significant transformation, with major shifts in market share and capital flows reshaping the ecosystem. This analysis tracks the behavior of 105 “whale” addresses (each withdrawing >$10M worth of ETH from Lido) over a one-year period, revealing sophisticated capital allocation strategies and emerging trends in the DeFi ecosystem.
The Changing Face of Ethereum Staking
Ethereum staking continues to outpace overall ETH supply growth, with staked ETH increasing by 5.77% compared to just 0.52% growth in total supply. Between April 2024 and April 2025, the percentage of ETH being staked rose from 27.00% to 28.42%, demonstrating the market’s continued confidence in Ethereum’s proof-of-stake consensus mechanism.
However, the competitive landscape among staking providers is shifting dramatically:
- Lido’s market dominance is waning, with a 2.45% decline in market share
- Binance and Ether.fi emerged as the biggest winners, gaining 2.89% and 2.80% market share respectively
- Renzo experienced the steepest decline with a 1.84% reduction
- Coinbase, the second-largest provider, also lost ground with a 1.99% decrease
Lido’s Withdrawal Patterns: A Deeper Look
The data reveals a concerning trend for Lido, with net outflows of 52.3K ETH over the analyzed period. Total withdrawals (1.98M ETH) significantly exceeded new deposits (1.67M ETH), creating a withdrawal-to-deposit ratio of 119%. Most tellingly, 86.6% of these withdrawals were principal rather than rewards, indicating users are actively moving their capital elsewhere rather than simply harvesting yields.
The Whale Effect: Concentration of Capital
The withdrawal patterns show extreme concentration among a small number of large players:
- 105 whale addresses (non-contracts withdrawing >$10M) accounted for 40% of all ETH withdrawals (~2.19M ETH, valued at $3.45B)
- Three protocols alone (Blast, Puffer, and Origin Protocol) represented 28.42% of all withdrawals
- Combined, these whales and top protocols accounted for 68.42% of total withdrawal volume
This concentration reveals how a relatively small number of sophisticated players can significantly impact capital flows in the DeFi ecosystem.
Whale Withdrawal Timeline
The withdrawal activity of these 105 whale addresses shows interesting temporal patterns:
- Daily withdrawals averaged 6,431 ETH but fluctuated dramatically (from 2.5 to 70,249 ETH)
- Peak withdrawal days occurred on January 12, 2025 (70,249 ETH) and December 24, 2024 (66,406 ETH)
- The total withdrawn over the year reached a staggering 2,186,379 ETH ($3.45B)
Following the Money: Where Whale Funds Flow
By tracking the movement of funds from these whale addresses, we can map the complex flow of capital across the DeFi ecosystem:
Destination Breakdown
- Non-Contract Addresses: 31.94% (3.82M ETH)
- Aave v3: 17.37% (2.08M ETH)
- Spark Protocol: 10.61% (1.27M ETH)
- OneInch: 6.87% (823K ETH)
Protocol Retention Rates
The analysis reveals fascinating differences in how protocols retain whale capital:
- Spark Protocol: 0.48% retention rate - primarily used as a “pass-through” for borrowing operations
- Aave v3: 19.74% retention rate - serves dual functions of lending and partial storage
- OneInch: 56.23% retention rate - likely used for trading or medium-term holding
Key Insights on Capital Flow
- DeFi lending protocols collectively received 30.94% of withdrawn funds
- Clear differentiation emerges between high-retention platforms (trading/holding) and low-retention platforms (leverage tools)
- Lido itself shows a negative retention rate (-256.06%), confirming users are withdrawing without restaking
- Whales demonstrate sophisticated cross-protocol capital management, with an overall retention rate of just 3.67%
Case Study: Whale Interaction with Spark Protocol
One particularly interesting pattern emerged when analyzing how whales interact with Spark Protocol:
Trading Cycle Pattern
- Deposit WETH as collateral
- Borrow DAI
- Repay DAI (typically within 1-7 days)
- Withdraw WETH
In January 2025, we observed a whale depositing $364M worth of ETH, borrowing $171M in DAI, quickly repaying it, and withdrawing most of the collateral.
This efficient liquidity utilization demonstrates how professional traders use Spark Protocol to quickly access capital for market arbitrage. While generating significant transaction volume, this pattern results in shorter asset retention periods, reflecting DeFi users’ preference for flexible capital allocation to optimize investment portfolios.
Conclusion
This analysis reveals the sophisticated capital management strategies employed by large ETH stakers as they navigate the evolving DeFi landscape. The data suggests a maturing ecosystem where capital efficiency, yield optimization, and strategic positioning across multiple protocols are becoming increasingly important.
For Lido, the findings present both challenges and opportunities. While facing increased competition and outflows, understanding these whale behaviors could inform product development and retention strategies.
For the broader DeFi ecosystem, these capital flows highlight the increasing interconnectedness of protocols and the emergence of specialized roles within the financial stack. As the market matures, we can expect further specialization and efficiency optimization across the ecosystem.
Methodology
This analysis tracks 105 whale addresses that each withdrew more than $10M worth of ETH from Lido between April 22, 2024, and April 21, 2025. Using on-chain data, we traced the subsequent movement of these funds across the DeFi ecosystem to identify patterns, preferences, and strategies.
For the complete interactive dashboard with all data visualizations, visit Lido Whale Withdrawal Analysis on Dune Analytics.
For questions, collaboration opportunities, or custom analysis requests, connect with me on Twitter/X.