Lido Finance, a prominent player in the liquid staking ecosystem, has achieved remarkable success in November 2023. The project’s total value locked (TVL) has surpassed $20 billion, marking an 18.61% increase since October.

This surge in TVL can be attributed to the successful launch of Lido’s version 2, which allows users to convert their staked Ethereum (stETH) back to Ethereum (ETH) and enhances staking trust. Additionally, the substantial price increase of Ethereum in November has significantly contributed to the growth of deposited funds.

One of Lido Finance’s notable achievements is the increase in staked ETH. In November, the total ETH staked reached an impressive 9.27 million, representing a 5.17% increase from the previous month. The number of unique ETH stakers also surpassed 200,000, growing by 2.96%.

However, concerns have been raised about Lido Finance’s dominance in the liquid staking market. With a market share of 77.27%, Lido is the clear leader in this category. While this accomplishment is commendable, it has sparked worries about centralization and potential security risks within the Ethereum community.

To strengthen its position in the DeFi industry, Lido has pursued strategic partnerships and expansions. It has secured listings on the Hashkey Exchange and formed alliances with Aave V3 on Base, making its services more accessible to a wider range of users.

Despite its success, Lido Finance’s dominant market position has raised concerns about centralization and security risks. Ethereum developer Evan van Ness has described Lido as the “biggest attack on Ethereum’s decentralization,” emphasizing the importance of maintaining a market share cap of 33% to prevent potential manipulation of the Ethereum network.

While Lido Finance has made significant progress in the liquid staking sector, there are serious concerns about the overall well-being and decentralization of the Ethereum ecosystem due to its dominant position.

In terms of market performance, Lido Finance’s governance token, LDO, is currently trading at $2.21. Despite the advancements in the liquid staking sector, the LDO token has experienced relatively modest gains, with a 1.6% increase.