Lido Finance rides the wave of Ethereum’s upgrade, here’s how

ambcrypto.com:

In anticipation of the Shanghai Capella Upgrade on Ethereum mainnet in April 2023, liquid staking platform Lido Finance [LDO]  has witnessed a significant increase in its total value locked (TVL) as Eher [ETH] stakers look forward to the unlocking of previously locked ETH tokens. 

According to data from DefiLlama, in the last month, Lido’s TVL increased by 18%. Moreso, this went up by almost 25% in the last seven days.

At press time, the protocol’s TVL was $10.57 billion, representing a 21.66% share of the entire decentralized finance [DeFi] ecosystem. 

Source: DefiLlama

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As a result of the contagion brought about by FTX’s unexpected collapse in November 2022, Lido’s share of the ETH staking market dropped below 30% for the first time since April 2022.

Even though Lido displaced MakerDAO [MKR] as the DeFi protocol with the highest TVL in January, Lido’s share of the ETH staking market lingered at 29% in the first two months of the year.

However, things took a different turn in March as Lido reclaimed its 30% market share and surpassed it. This has been due to the execution of the Shanghai Capella Upgrade on Ethereum’s Goerli testnet and the confirmation of a 12 April date for the mainnet upgrade. 

At press time, 5,579,744 ETH tokens were staked through Lido, representing a 31% market dominance.

Source: Dune Analytics

Further, on 12 March, Lido’s staking Annual percentage rate (APR) rallied to its highest point far this year, reaching an impressive 9.91%.

Per data from Dune Analytics , this growth was, however, ephemeral as the staking APR on the platform consequently plummeted. At press time, this was 5.94%. 

Realistic or not, here’s LDO market cap in BTC’s