Lido Finance [LDO] emerges as the king of DeFi, but there is a problem

Lido Finance LDO had a rollicking start to 2023 after it eclipsed MakerDAO MKR to become the biggest decentralized finance DeFi protocol, as per DappRadar. Moreover, the total value locked (TVL) of Lido's smart contracts went past $8 billion in January 2023, which amounted to gains of over 36%.

Timeline of Lido-dao

According to Delphi Digital's recent data, Lido's market share declined significantly over the last year. This can be attributed to the entry of Coinbase into the liquid staking derivatives market in June 2022.

Since the start of 2023, Lido Finance [LDO] has seen a value growth of over 150%. Additionally, the protocol's Total Value Locked (TVL) increased when the TVL for competing DeFi protocols stagnated.

Over the last week, the Lido [LDO] protocol witnessed a surge in the number of staked deposits on its platform. According to a tweet on 24 January, the number of staked deposits on Lido increased, except that of Solana [SOL].

Lido's market cap grew significantly over the last few days, according to recent data provided by Messari. The growth in market cap was attributed to the hype around the upcoming Shanghai Hardfork on Ethereum.

Rocket Pool, the third largest Ethereum liquid staking protocol by trade value locked (TVL), has joined forces with Coinbase Ventures. According to an announcement on Rocket Pool's discord channel, Coinbase Ventures will be joining Rocket Pool's Oracle DAO (oDAO).

On Friday, the Web3 wallet firm Metamask, a subsidiary of the Ethereum-centric company Consensys, announced the beta launch of ethereum staking features will be made available via Lido's or Rocketpool's liquid staking services.

Ethereum's [ETH] Shanghai update, set to go live in the first quarter of 2023, will introduce staking to the ETH protocol. The update has the potential to be a key growth catalyst for staking protocols such as Lido [LDO].

Key Points: A wallet with a substantial amount of LDO has transferred $1,000,000 $LDO to Binance. One million dollars' worth of LDO was sent from a wallet holding a sizable this token balance to the cryptocurrency exchange Binance.

Lido Finance's governance token LDO, saw a significant increase in price of 78% in the past week. This made LDO one of the top-performing cryptocurrency assets in terms of gains over the past seven days, according to data from CoinMarketCap.

Liquid staking derivatives tokens have increased by an average of over 40% in the last seven days, with Lido (LDO) rising the highest by over 64%, according to CryptoSlate's data. The post Liquid staking tokens surge 40% in seven days, Lido rises highest appeared first on CryptoSlate.