Lido solidifies mastery in DeFi landscape after major upgrade: Details inside

Lido LDO, a protocol in the DeFi ecosystem, has observed significant improvements over the past week. Notably, the protocol took advantage of its press time growth by upgrading its technology.

Timeline of Lido-dao

The team behind the protocol has revealed the proposal for Lido V2, which will be the protocol's largest upgrade to date.  First Upgrade - Staking Router On Tuesday, the technical contributors behind Lido presented the proposal for the V2 upgrade, which is slated to further the protocol's move toward complete decentralization.

Key Points: Lido Finance has completed the design for the second iteration of its protocol, which will add support for Ethereum staking withdrawals post-Shanghai and rebuild the Staking Router to increase the platform's decentralization. According to a blog post, the proposals were presented to the Lido community.

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%.

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].