Journalist
Posted:
- Lido had a 76.47% share of the ETH staking market.
- The value of Lido’s deposits has more than tripled since the start of 2023.
An investor bet $69 million into Lido Finance’s staking pool [LDO], the largest liquid staking protocol. The claim was made in an X-post from Alex SvanevikCEO of the popular on-chain analyst firm Nansen.
In a statement shared with AMBCrypto, Nansen stated that the deposits were made in Ethereum [ETH]increased Lido’s ETH counts, further cementing its market dominance.
Lido remains in charge
According to AMBCrypto’s examination of DeFiLlama data, ETH worth nearly $20.2 billion was locked at Lido at the time of writing. The staking giant had an astonishing 76.47% share of ETH’s staking market.
Source: DeFiLlama
The Total Value Locked (TVL) on the platform, including deposits from other tokens such as MATIC, was approximately $20.37 billion, making it by far the largest decentralized finance (DeFi) project.
To get an idea of the proportions: Lido’s TVL was at the time of writing more then the combined TVL of the second and third ranked protocols on the list.
The value of Lido’s deposits has more than tripled since the start of 2023. Crucial developments during the year played an important role in driving Lido’s demand in the market.
Most prominent was the launch of version 2, which allowed users to withdraw their Staked ETH [stETH] to Ethereum. This, of course, came after Ethereum’s technology was enabled following the Shapella upgrade in May.
Moreover, the sharp increase in ETH’s market value in the last quarter boosted the USD value of deposited funds.
The success of the project is reflected in LDO
With the increase in ETH supply, revenue from the protocol has also increased significantly in 2023.
In fact, in the week beginning December 3, the protocol recorded revenue of $3.27 million, compared to 2022 weekly averages of $1 million.
Source: DeFiLlama
Realistic or not, here is the market cap of LDO in terms of BTC
The increase in revenue created market demand for the platform’s utility token, LDO. According to CoinMarketCapthe asset was trading at $2.11 at the time of writing, more than twice its value in early 2023.
Please note that holders are eligible for a 50% cut of Lido earnings. LDO therefore derives value from the success of the project.
