Lido in muddy waters? New data around LDO suggests….
The larger staked ETH market has started to reflect regulatory concerns, according to new data. Over the past few weeks, the overall amount of ETH staked through liquid staking derivatives has declined too.Read LDO’s Price Prediction 2023-2024Overall ETH staked through liquid staking services has declined from 304,684 to 65,664, according to Dune Analytics’ data.Source: Dune AnalyticsHere, the declining interest in Liquid staking could impact Lido’s positive performance, which it has seen over the past week.According to DeFiLlama, Lido’s TVL managed to grow from 8.069 billion to 10.09 billion on the charts.
However, the hike in TVL wasn’t only contributed to by staked deposits. In fact, the appreciating price of ETH also had a role to play in the TVL’s spike.Source: Defi LlamaEven though Lido’s TVL continued to rise, Lido’s dominance in the liquid staking derivates sector fell.
At press time, 31.4% of all ETH was staked through Lido. Other competitors such as Coinbase and Kraken enjoyed a high share too and captured 17.7% and 7% of the market, respectively.Due to the volatility caused by the USDC saga, the overall reserves of the Lido protocol also fell.
Lido’s reserves on lending protocols such as Curve and MakerDAO fell by an average of 21% The reserves included both ETH and stETH.Over this time period, Lido Finance recorded a decline in its total earnings.
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