The scale of the Ethereum staking track is growing larger, and currently, Lido’s Total Value Locked (TVL) has reached an astonishing $31.3 billion. The “re-staking market” has also become a new hotspot in the market in the first half of this year.
Lido TVL reaches $31.3 billion
With the launch of Ethereum’s Cancun upgrade on March 13th, the potential opportunities have emerged. After the upgrade, staked Ethereum can be redeemed, which not only encourages users to deposit ETH into staking protocols to earn a staking reward of 4-5%, but also attracts many investors who hope to maximize their earnings by using liquid staking derivatives (LSD), making LSDFi the hottest narrative in DeFi at the time.
LSD, which stands for liquid staking derivatives, allows users to stake tokens and exchange them for certificates. LSD represents the staked assets held by the holders, who can enjoy the benefits of staked tokens and participate in derivative exchanges.
With the pursuit of capital efficiency once again increasing, the “re-staking market” has become a new hotspot in the market this year. Ethereum investors are chasing projects such as Eigen Layer Renzo, ether.fi, Kelp DAO, Eigenpie, Swell, and Puffer Finance, earning interest income while earning potential airdrop points from these projects.
After ETH broke through $3,200 with continuous price increases, according to the latest data from DefiLlama, Lido’s TVL has reached $31.3 billion, reaching a historical high.
Further data from Dune reveals that the overall staking rate of Ethereum is currently 25.62%, with Lido’s market share reaching as high as 31.62%, demonstrating its strong position in the market.
Blast, since its launch in the second half of last year, has continuously reached new TVL highs, with a total locked amount of $2.1 billion, of which $2 billion has been deposited into Lido. As the mainnet launch date approaches, the Blast ecosystem project has also received continuous market attention.
In the past, Lido would often rise in sync with Ethereum when it surged. However, recently, the correlation between the two seems to have weakened. While ETH has risen by over 97% in the past year, Lido’s governance token, LDO, has only increased by 14.9%.
It seems that the heat has been absorbed by the re-staking market and the Ethereum spot ETF. Additionally, the market has been concerned about Lido’s decentralization level, fearing that it may affect the security of the Ethereum ecosystem. If LDO cannot address this concern, its token price may have difficulty returning to its glory.
Related Reports:
– A Comprehensive Analysis of the Re-staking Battlefield: Which Protocol Should You Participate In?
– Behind the Surge of Pendle: Gambling on Airdrops and Leveraging! The Winners in the Narrative of Re-staking in EigenLayer
– The Hottest Track Recently: Nearly 50 “Re-staking Projects” Competing. Who Can Take the Big Cake?