Ethereum’s [ETH] Shanghai update, set to go live in the first quarter of 2023, will introduce staking to the ETH protocol. The update has the potential to be a key growth catalyst for staking protocols such as Lido [LDO].

The growing number of ETH staked on Lido suggested that more users were taking advantage of the staking opportunities offered by the protocol until press time.

However, Lido observed a decline in the annual percentage rate (APR). This could potentially affect the attractiveness of the protocol for users looking to earn staking rewards.

Coupled with that, Lido saw a drop in both total revenue (-18.80%) and unique users (-24.17%) over the past period, according to Messari. The total revenue collected was $25.39 million and the number of unique users was 11,017 at press time.