DeFi
DeFi TVL hits $106 billion: was Lido the biggest contributor?
- DeFi TVL is now at its highest level since May 2022.
- Lido’s share of the ETH staking market is declining.
The total value locked (TVL) in decentralized finance (DeFi) protocols has reached its highest level in two years amid the general market recovery, according to ChallengeLlama data.
At press time, DeFi TVL was worth $106.45 billion. Evaluated on a year-to-date basis (YTD), this figure has increased by 96% since the start of the year.
Source: DéfiLlama
Lido sees a decline in its market share
The value of assets locked in pools on Financing of the Lido [LDO]the first Ethereum [ETH] staking provider and TVL’s largest DeFi protocol, has been growing steadily since May 12.
Prior to this period, the protocol’s TVL had fallen to a two-month low of $27.43 billion. However, as the value of cryptocurrency assets began to rise in mid-May, Lido’s TVL followed the trend and has since increased by 30%.
Interestingly, Lido’s share in the ETH staking ecosystem has declined. At the time of writing, 28.6% of all ETH deposited on BeaconChain was made via Lido, according to data from Dune analysis. The last time Liquid Staking Protocol’s share reached this low was on April 17, 2022.
Source: Dune analysis
This drop is part of a broader trend of a decrease in ETH staked on several platforms over the past few days.
Information extracted from The Block data dashboard showed that after reaching a high of 27% on May 13, the percentage of the total ETH supply that has been staked has since decreased by 4%.
LDO sees demand increasing
Regarding the protocol’s governance token, LDO, it was trading at $2.13 at press time. According to CoinMarketCapthe value of the altcoin has increased by more than 30% in the past week.
The rise in the token’s value is attributable to the increase in demand during this period. Santiment data showed a rally in its relative strength index (RSI) since May 19. At 62.149 at press time, LDO’s RSI showed that buying momentum was more important than selling pressure.
Source: Santiment
Realistic or not, here it is Market capitalization of LDO in terms of BTC
Additionally, LDO whale activity has increased in recent days. In fact, on May 21, the daily number of LDO whale transactions exceeding $100,000 reached its highest level since March 6.
On that day, 131 LDO transactions worth over $100,000 were completed.
Source: Santiment