The Rise of Decentralized Staking and its Impact on Crypto Markets

Binance and Coinbase have experienced significant outflows of staked ether (ETH) since Ethereum's Shanghai upgrade, as investors turn to decentralized rivals. Coinbase's staking platform has seen a $367 million net outflow of staked ETH since April 12, while Binance's staking service has seen a net outflow of $340 million. In contrast, decentralized liquid staking protocols such as Frax Finance and Rocket Pool have enjoyed a sharp rise in deposits, with net inflows of $56 million and $68 million, respectively. Regulatory risks and higher yields are among the reasons driving investors to decentralized staking protocols.