According to Glassnode analysts, the DeFi activity on Ethereum has decreased during the bear market and is facing competition from Ethereum's annual staking reward of 4%. However, there is a growing DeFi narrative around liquid staking derivative (LSD) tokens that could revive Ethereum's network activity. The percentage of gas consumed by DeFi protocols has dropped from 34% in 2020 to 8-16% presently, with NFTs commanding the maximum share of 25-30%. The DeFi "Blue-Chips" have lost 88% of their market capitalization from the all-time highs of $45 billion in May 2021. Staking has become popular among Ethereum investors, especially after the Shapella upgrade in April 2023, which enabled redemptions from the staking contract. LSD platforms like Lido and Rocket Pool account for one third of this massive market. These applications offer tokenized representation of staked ETH, allowing investors access to the staking yields without compromising liquidity. The liquidity of LSD tokens on Curve Finance, the largest stablecoin exchange in the market, has surpassed $1.5 billion.