• Lido is the leading DeFi project with the highest TVL, at $7.92 billion.
• The Shanghai Upgrade of Ethereum’s network has contributed to a jump in the value of assets locked on Lido.
• Staking APR on the platform has fallen consistently, but revenue on the network continues to grow.
Lido Finance Leads DeFi Market with Highest Total Value Locked
With a 16.77% market share of the $47.2 billion worth of crypto assets locked on several decentralized finance (DeFi) protocols, Lido Finance (Lido) retains its spot as the leading project with the highest total value locked (TVL). Read Lido Finance’s [LDO] Price Prediction 2023-2024 After displacing MakerDAO for the first time in January, Lido has held on to its position and its TVL at press time was $7.92 billion closely followed by MakerDAO which had a TVL of $7.09 billion.
Influence of The Merge
The confirmation of a March date for the Shanghai Upgrade for the Ethereum network might have contributed to a jump in the value of assets locked on Lido. According to a report published in December by blockchain analytics platform Nansen, staking solutions have been highly sought after since Ethereum’s transition to a proof-of-stake (PoS) consensus mechanism in September 2022. The report emphasized the influence of „The Merge“ in bringing staked ETH as a yield-generating instrument that is purely native to cryptocurrency and has surpassed other yield-generating services that are collateralized.. Additionally, sustained increase in demand and usage of stETH – tokenized version of staked Ether native to Lido – further solidified protocol’s position as DeFi project with largest TVL
State Of ETH Staking On Lido
According to Dune Analytics, Lido’s share of ETH staking market was 29.36% at press time and this number oscillated between 29.25% and 292937% so far this year .Realistic or not , here’s LDOs market cap in BTC terms
Decline In Annual Percentage Rate Offered By LIDO For ETH Stakers
As mentioned before ,after rallying to an all time high 1021 %on 14 November 2022 , ldio’s staking APR has declined steadily . As per records from dune analytics ,this was 479 %at press time . This gradual reduction in APR offered by ldio might be one reason behind decline in its marketshare . As per records from 16th May 2022 , ldio controlled over 32 %of total ETH stake .
Revenue Growth On Network
Finally revenue growth on network continued as per data from token terminal .ldio’s revenue is closely tied up with ethereum PoS earnings as ldio offers yields through it reward pool which payouts yields generated by PoS rewards earned through validators participating into eth 2 0 consensus mechanism