- Lido saw significant growth from TVL aided by top tier 2 networks.
- LDO struggled to sustain a rally as exchange flows switched in the bears’ favor.
The crypto market has seen a return of volatility in recent weeks and that means a healthy move in DeFi. Lido Finance [LDO] just released its latest weekly update, which revealed some correlation to the higher volatility.
Is your wallet green? Check out the Lido Profit Calculator
Lidos latest update revealed that it was the leading staking platform in terms of net new ETH deposits to the Ethereum [ETH] beacon chain during the week. The growing deposits were a testament to the platform’s continued growth.
The weekly report also revealed that Lido registered a TVL increase of 12.72% from June 19 to June 26. Lido’s TVL initially started June with some slippage, but recovered in the second half of the month. It recently peaked at $14.18 billion.
Source: DeFiLlamma
So, where is most of this growth coming from? According to another Lido update, Ethereum Layer 2 networks have contributed to the majority of ETH deployed. Since liquid staking generates wstETH, a look at the growth of this token can provide insight into which platforms are contributing the most staked ETH.
The update revealed that arbitration [ARB]Optimism [OP]and Polygon [MATIC] were the leaders with 62,994, 40,686, and 4,775 wstETH, respectively.
Will LDO benefit from Lido’s growth?
LDO has moved with the market so far this year. It delivered a bearish performance from early June, reaching a low of $1.62 in mid-June. This is the same low range as in May.
It was trading at $1.96 at the time of writing after a healthy run since mid-month.
Source: TradingView
Again, LDO’s final upside reflected the overall market performance. Nevertheless, it encountered some resistance after interacting with the 50-day moving average.
LDO’s on-chain data showed that the supply of top addresses fell slightly on June 11 and had yet to recover at the time of writing. On-chain volume fell to its lowest monthly level on June 18, but has since recovered significantly.
Source: Sentiment
Despite the slight recovery, the volume metric is still near the lower range, hence the lack of confidence. Meanwhile, exchange flows showed that LDO was experiencing more inflows than outflows at the time of writing.
This meant that the price experienced more selling pressure than buying pressure.
LDO exchange flows
How much are 1,10,100 LDOs worth today?
The slowdown in the press time alternating current mirrored the outcome of the price action. As noted earlier, LDO is struggling with resistance near the 50-day moving average. This meant that selling pressure increased as traders geared up to take profits.
However, LDO bulls may still have room for more upside if demand picks up again.
