As The Merge of Ethereum draws inexorably closer, Lido continues to succeed. Indeed, the project records an unparalleled increase in its activities and its TVL explodes. Meanwhile, Lido DAO’s governance token surged more than 25% in seven days against the US dollar.
Staking Ethereum (ETH) Behind This Week’s Lido TVL Rise?
Lido Finance is a liquid staking project that allows cryptoassets to wrap their cryptocurrencies in order to earn a staking return. The process also allows investors to hold assets on a non-custodial basis and to be able to trade them. Lido offers liquid staking solutions for many blockchains.
Among others, Solana (SOL), Polygon (MATIC), Ethereum (ETH), Kusama or Polkadot (DOT). However, most of the project’s total value locked (TVL) comes from locked ether. Indeed, out of $7.81 billion of Lido, ETH accounts for about $7.61 billion of TVL. While The Merge is expected in a few days, there is an increase in activity on the decentralized finance (DeFi) project Lido.
According to data from defillama.com, Lido’s TVL has inflated 13.08% over the past seven days. Over the past 24 hours, the total value locked has gained 2.43%. Currently, STETH, the Lido-wrapped ether-derived token is the thirteenth-largest crypto by market capitalization. Right now, Ether locked in Lido’s app is equivalent to roughly 12.60% of TVL’s $60.38 million in DeFi.
When 8 Ethereum 2.0 pools and three major exchanges are neck and neck
According to data from Dune Analytics, Lido is the largest depository in the Beacon chain with nearly 30.3% of deposits coming from Lido Finance. Coinbase and Kraken are just behind the project with 14.5% and 8.3% of deposits respectively. Recently, Coinbase launched CBETHa liquid staking token called Coinbase wrapped Ethereum.
Based on statements from crypto analyst JP Morgan in mid-August, the exchange may well be a major beneficiary of the Ethereum (ETH) merger. Recall that currently there are approximately 426,198 validators and 13,638,351 ethers locked in the ETH 2.0 contract. However, Lido Finance holds 30.49% of the 13.6 million ETH staked.
Apart from the big exchanges mentioned, Lido also competes with Cream, Sharedstake, Stkr, Stakewise, Stafi, Rocketpool, and Stakehound. There are roughly 4,585,038 ethers locked and Lido controls 30.49% of staked ETH. As for the other aforementioned ETH 2.0 pools, they account for 33.11% of Ethereum staking.
On September 11, Lido became the second largest DeFi protocol behind MakerDAO in terms of TVL stats. With all this activity, the Lido DAO (LDO), the Lido governance token has grown by 25.4% in the last two weeks.
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