Journalist
Posted:
- Eigen Layer observed a huge tick in its deposits and gained ground in the LSD space.
- Lido continued to grow and the symbolic price turned green.
The lido [LDO] protocol is one of the most prominent networks in the LSD sector. It also benefited the most from the crypto community’s increasing interest in liquid staking.
However, as interest increased, so did competition. EigenLayer recently achieved a Total Value Locked (TVL) milestone by surpassing $1 billion.
This achievement followed the introduction of six new liquid staking tokens to their platform. Furthermore, EigenLayer has expanded its global limit from 120,000 ETH to 500,000 ETH.
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EigenLayer just surpassed $1 billion in TVL after introducing 6 new liquid staking tokens and increasing their global limit from 120k ETH to 500k ETH. pic.twitter.com/YrS8mEX3Sw
— ASXN (@asxn_r) December 22, 2023
While the LSD space is getting crowded, the Lido Protocol can take advantage. A large portion of the Deposits into the Eigen Layer came from the massive amounts of sETH deposited into the protocol.
Source: ASXN
The popularity of stETH will play a crucial role in Lido’s growth in the future. In addition to the fame of the stETH, the Lido board can also play a role in the growth of the protocol.
The Lido board was confronted with a scenario in which one of its employees, InfStones, faced technological challenges. To mitigate potential risks, InfStones has proactively halted certain activities, addressed the issues and implemented additional measures to improve system security.
The Lido community then engaged in a consultation process to decide whether to reintroduce InfStones. After thorough discussions, they concluded that InfStones had effectively resolved the technical issues.
Consequently, the community granted approval for InfStones to resume its previous activities.
The Lido DAO’s quick action showed that even though the protocol is growing rapidly, the board can still make quick decisions that can help the protocol in the long run.
How are things going with LDO?
Lido’s growth was also reflected in price movements. At the time of writing, LDO was trading at $2.32 and the price was up 5.52% in the last 24 hours.
Realistic or not, here is the market cap of LDO in terms of BTC
The token’s network growth also increased during this period. This meant that new addresses interacted with the LDO token much more often than usual.
Only time will tell if LDO will be able to maintain this kind of momentum.
Source: Santiment
