• Thu. Nov 21st, 2024

Lido Finance (LDO) Witnesses Nearly $7B in TVL Post 74% Drop: Here’s Why

Erik Taylor

ByErik Taylor

Sep 2, 2022

Lido Finance is a leading platform for ETH liquid staking, with more than 80% market share. Meanwhile, the market leader is making headlines.

The largest ETH ‘shareholders’ saw a massive price surge within the past 24 hours. However, that catalyzed this rally. Moreover, can it sustain the upside?

Bulls in the Making

While writing this content, Lido Finance’s governance coin, LDO, gained more than 16.2%. That saw the alt leading gainers on the Coinmarketcap list regardless of declining cryptocurrency prices. So, what helped the altcoin to record such an impressive rally?

Meanwhile, Ethereum’s switch to the awaited version might see LDO becoming a leading ‘shareholder’ of PoS (proof-of-stake)-era Ethereum. More individuals prefer DAO since it will boast massive voting powers within the market.

Furthermore, LDO would also benefit from the new proposal by MakerDAO. The latter saw massive gains and traction.

Meanwhile, the two boast a long history. While publishing this post, they accounted for the leading protocols by total value locked within the DeFi market.

Moreover, TVL data remained ‘certainly’ pleasing. One month ago, TVL gained over $1 billion within two weeks. While publishing this post, the cumulative number highlighted an optimistic tale.

After dropping 74% in May-July, LDO’s TVL welcomed recoveries, though slowly. The platform’s total value locks hovered at $6.9 billion during this writing, gaining 9% from July.

DeFiLlama data shows LDO ranked 2nd in TVL, behind MKR (MakerDAO). How has that impacted the network? First and foremost, unique depositors hovered at the 77.4K level. Indeed, a substantial uptick within the past three months, according to Dune Analytics’ graph.

Some Short-Falls to Consider

In that context, the cumulative number did not reciprocate the picture, considering the colossal past corrections. Especially the After-May, the overall deposits noted a constant rate that did not fluctuate during this publication.

Moreover, the price could not maintain the optimistic enthusiasm. While writing this content, the altcoin endured a new 2% dip to trade at $1.96. Bears dominate the spectrum.

What are your thoughts about the above content? Feel free to comment below.

Erik Taylor

Erik Taylor

Erik Taylor, contributing author for Big Trends Signals, leverages his vast online trading knowledge to provide thorough guides and impartial reviews, simplifying complex trading concepts for readers.

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