Lido (LDO), the leading liquid staking derivatives (LSD) protocol, recently made waves within the crypto community by enabling staked ETH (stETH) withdrawals. Expectations were high as many anticipated a surge in stakers unstaking their ETH.
Nonetheless, contrary to those predictions, Lido has witnessed a remarkable increase in ETH deposits, reaching a record-breaking level. This surge has also been reflected within the protocol’s native token which has recorded a rally of greater than 20% previously week.
ETH Deposits Soar to Latest All-Time High
Despite the introduction of stETH withdrawals, Lido experienced a surge in ETH deposits, defying expectations of widespread unstaking. On Friday, the platform witnessed a major milestone as the full variety of ETH deposited hit an all-time high.
In response to data provided by Lido, an astounding 6,373,289 ETH is currently staked with Lido, reminiscent of greater than $11.5 billion. Interestingly, while 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 yet to be processed, contributing to the general stability of stETH withdrawals. This trend raises questions on the anticipated unstaking frenzy, prompting a better examination of the aspects influencing stakers’ decisions.
As essentially the most significant liquid staking derivatives protocol, Lido holds a formidable 75% market share, surpassing its competitors within the Liquid staking (LSD) space. Notably, in response to data from Nansen, Coinbase and Rocket Pool trail behind, occupying the second and third positions.
Moreover, while it might sound like positive news that ETH deposit is surging while withdrawal flattens, it’s value noting there are several reasons behind this in order to not get carried away. On the one side, the stabilized withdrawal might be attributed to the pending processing of withdrawal requests.
On the opposite side, it may be attributed to stakers’ long-term commitment to the protocol and the attractiveness of Lido’s offerings amidst the volatile crypto landscape.
Lido Surges 20% In The Past Week
Together with its surge in market share, Lido native token LDO’s price has experienced an upward trend previously week up by greater than 20%. Lido has surged from a low of $1.81 seen last Friday to trading as high as $2.48 on Wednesday.
LDO market capitalization has also recorded huge gains previously 7 days. LDO’s market cap has surged 20.7% from a cap low of $1.5 billion to a high of over $2 billion on Wednesday. Meanwhile, LDO’s every day trading volume has only continued to range between $60 million and $100 million throughout the week.
Lido DAO (LDO)’s price is moving sideways on the 1-Day chart. Source: LDO/USDT on TradingView.com
Interestingly, the asset has plunged over the past 24 hours down by 4.4%. LDO currently trades barely above $2 with a price of $2.18 on the time of writing with a 24-hour trading volume of $62.1 million.
Featured image from Analytic Vidhya, Chart from TradingView