Lido (LDO), the main liquid staking derivatives (LSD) protocol, just lately made waves within the crypto neighborhood by enabling staked ETH (stETH) withdrawals. Expectations had been excessive as many anticipated a surge in stakers unstaking their ETH.
Nevertheless, opposite to those predictions, Lido has witnessed a exceptional enhance in ETH deposits, reaching a record-breaking level. This surge has additionally been mirrored within the protocol’s native token which has recorded a rally of greater than 20% up to now week.
ETH Deposits Soar to New All-Time Excessive
Regardless of the introduction of stETH withdrawals, Lido skilled a surge in ETH deposits, defying expectations of widespread unstaking. On Friday, the platform witnessed a big milestone as the full variety of ETH deposited hit an all-time excessive.
In response to data offered by Lido, an astounding 6,373,289 ETH is at present staked with Lido, equal to greater than $11.5 billion. Curiously, whereas ETH deposits on Lido proceed to soar, stETH withdrawals have remained stagnant across the 450,000 ETH mark, as reported by data from Nansen.
It’s value noting that these withdrawal requests have but to be processed, contributing to the general stability of stETH withdrawals. This pattern raises questions concerning the anticipated unstaking frenzy, prompting a better examination of the components influencing stakers’ selections.
As essentially the most vital liquid staking derivatives protocol, Lido holds a formidable 75% market share, surpassing its rivals within the Liquid staking (LSD) space. Notably, in line with knowledge from Nansen, Coinbase and Rocket Pool path behind, occupying the second and third positions.
Moreover, whereas it might sound like constructive information that ETH deposit is surging whereas withdrawal flattens, it’s value noting there are a number of causes behind this in order to not get carried away. On the one facet, the stabilized withdrawal may be attributed to the pending processing of withdrawal requests.
On the opposite facet, it may be attributed to stakers’ long-term dedication to the protocol and the attractiveness of Lido’s choices amidst the unstable crypto panorama.
Lido Surges 20% In The Previous Week
Together with its surge in market share, Lido native token LDO’s worth has experienced an upward trend up to now week up by greater than 20%. Lido has surged from a low of $1.81 seen final Friday to buying and selling as excessive as $2.48 on Wednesday.
LDO market capitalization has additionally recorded large features up to now 7 days. LDO’s market cap has surged 20.7% from a cap low of $1.5 billion to a excessive of over $2 billion on Wednesday. In the meantime, LDO’s day by day buying and selling quantity has solely continued to vary between $60 million and $100 million all through the week.
Curiously, the asset has plunged over the previous 24 hours down by 4.4%. LDO at present trades barely above $2 with a worth of $2.18 on the time of writing with a 24-hour buying and selling quantity of $62.1 million.
Featured picture from Analytic Vidhya, Chart from TradingView