Can Lido [LDO] maintain its dominance despite declining APR?

ambcrypto.com:

Lido [LDO] has been dominating the DeFi space for a while. Over the last week, it even furthered the improvements on its protocol in several areas. However, its declining APR may cause trouble for the protocol in the future.

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According to Dune Analytics’ data, the overall APR generated by Lido for its users has fallen from 7.2% to 5.6% over the past few weeks. A decline in APR could incentivize the users of the protocol to seek other alternatives to stake their ETH.

Source: Dune Analytics

Despite this decline in APR, the Lido protocol has seen progress. In terms of TVL, the Lido protocol observed a surge of 11.89%. One reason cited for the spike in TVL was the surge of Ethereum’s [ETH] price over the last week.

Along with Lido’s TVL, the number of deposits on the network also witnessed growth. According to Lido’s data, Lido has a 44.8% share in weekly new ETH deposits. But it is not just ETH deposits where Lido showed improvements. The number of Wrapped stETH [wstETH] on both lending pools and L2 solutions also grew during the last week.

These developments aided Lido in generating even more revenue. According to Token Terminal, the revenue generated by Lido increased by 30.7% over the last month. It seemed that this revenue that was being generated by Lido was being put to good use. This was showcased by the increasing number of active developers on the Lido protocol.

A high number of active developers on the protocol suggested that the number of contributions being made to Lido’s team to its GitHub had increased. This surge in development activity could suggest future upgrades and updates to the Lido network.

Source: token terminal

Regardless of these developments,