In a significant move, an investor has poured $69 million into a staking pool operated by Lido Finance (LDO), a leading liquid staking protocol in the cryptocurrency space. This investment, shared by Nansen CEO Alex Svanevik, reinforces Lido’s strength in the market. Let’s examine LDO’s performance this year and other developments.
Lido commands an impressive 76.47% share of the ETH staking market according to DeFiLlama data, with roughly $20.2 billion worth of ETH currently locked on the platform. The total value locked (TVL) in Lido, including deposits of other tokens like MATIC, exceeds $20.37 billion, solidifying its position as the largest decentralized finance (DeFi) project by a significant margin.
Notably, the value of deposits in Lido has more than tripled since the beginning of 2023, demonstrating significant market growth and demand for LDO. Developments like the launch of version 2, which allows users to withdraw Staked ETH [stETH], played a crucial role. This followed the May Shapella upgrade, contributing to Lido’s growing popularity.
The recent surge in ETH’s market value has further increased the USD value of the funds staked, strengthening Lido’s dominance in the staking sector. With the increase in staked ETH supply, Lido’s protocol revenue has seen a notable rise in 2023. In the week starting December 3, the protocol recorded an impressive income of $3.27 million, a significant jump from the $1 million weekly averages in 2022, showcasing the platform’s increasing success.
This financial success has translated into increased demand for Lido’s service token, LDO. As of this writing, LDO’s value has more than doubled since the start of 2023, trading at $2.11, reflecting the platform’s success. LDO holders also benefit from a 50% cut of Lido’s revenue, aligning the token’s value with the project’s ongoing growth. In summary, Lido Finance’s dominance in the ETH staking market, combined with its meteoric rise in 2023, positions it as a formidable player in the evolving landscape of decentralized finance.