In about three days, Ethereum is expected to transition from a proof-of-work (PoW) blockchain network to a proof-of-stake (PoS) version via The Merge. Prior to the switch, liquidity staking project Lido had more activity as the value locked in the protocol increased by more than 13% this week. Furthermore, the project’s knife lido governance token has gained 25.4% against the US dollar in the past seven days.
Lido TVL surges 13% higher this week, project’s wrapped Ether represents over 30% of Ethereum staked
Last week, Bitcoin.com News report about the decentralized finance (defi) project Lido as the project begins to see more demand than before Unify. Lido Finance is a liquidity staking project that allows people to wrap their crypto assets to collect staking profits, but the process also allows owners to hold assets in a non-custodial way and can trade them.
Lido provides liquid staking solutions for blockchains such as Ethereum, Solana, Polygon, Polkadot, and Kusama. However, most of the value locked in Lido comes from locked ether, like ETH represents $7.61 billion of Locked Lido’s (TVL) $7.81 billion total.
In the past seven days, data from defillama.com indicates that Lido’s TVL has increased by 13.08% and TVL has increased by 2.43% in the last 24 hours. While Makerdao is the biggest defi protocol right now, in terms of TVL stats, Lido is the second largest defi protocol as of September 11.
The ether locked in Lido’s app alone represents 12.60% of the total $60.38 billion TVL in defi today. Lido’s wrapped ether derivative token, STOP, is the 13th largest market cap out of 12,907 tokens worth $1.1 trillion. Lido Governance Token lido knife (LDO) has increased by 25.4% in the past two weeks.
Three Larger Exchanges and 8 Ethereum 2.0 Reservoirs
Data from Dune Analytics shows that Lido is the largest Beacon chain depositor with 30.3% of deposits coming from Lido Finance. Coinbase is second behind Lido with 14.5% of Beacon chain deposits and Kraken orders of 8.3%.
Coinbase recently launched a liquid staking token called ethereum-wrapped coinbase (CBETH) and in mid-August a JPMorgan market analyst speak Coinbase could be the physical beneficiary of Ethereum’s Consolidation transition. At press time, there are 13,638,351 ether locked into ETH 2.0 contract and has 426,198 validators. 30.49% out of 13.6 million ETH The deposit is placed through Lido Finance.
Besides major exchanges like Coinbase, Kraken and Binance, Lido also competes with Stkr, Sharedstake, Stafi, Stakewise, Cream, Stakehound and Rocketpool. Between Lido, Rocketpool, Stakehound, Stakewise, Stafi, Sharedstake and Stkr, there is a value of about 8.11 billion USD.
What do you think about the recent action of Lido Finance and the amount of 8 ether held? Let us know what you think about this topic in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This newspaper only gives true information. It is not a direct offer or solicitation to buy or sell, or a recommendation or endorsement for any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the Company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or materials. goods or services mentioned in this article.