Lido Finance, a decentralized finance protocol, has seen a significant increase in Total Value Locked (TVL), which recently increased by almost 7%. This growth is attributed to a combination of increased stake deposits and the rising value of cryptocurrencies such as Ethereum (ETH) and Polygon (MATIC), which increased by 7% and 6% respectively.
The protocol’s TVL reached $21.32 billion, marking a significant monthly increase of about a quarter. This TVL expansion is partly due to Lido processing net new deposits totaling over seventy-six thousand ETH last week, accounting for half of the market’s staking activity. In contrast, Coinbase, another major player in the cryptocurrency space, only managed to capture seventeen percent of this market share.
Binance, recognized as a leading cryptocurrency exchange, took the lead in ETH withdrawal volume with thirty-two thousand ETH unstaking. Additionally, the Annual Percentage Rate (APR) for staked Ethereum has been trending upward since early December.
Layer 2 platforms have experienced varying levels of activity with staked ETH (stETH). While Arbitrum saw a slight increase in bridged stETH by one percent and Polygon increased by one percent, Base experienced a notable increase of thirty-six percent. However, Optimism saw a slight decline of less than half a percent.
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