Key Points
- The total value locked (TVL) in DeFi protocols has reached a two-year high.
- Lido’s share of the ETH staking market is decreasing despite a steady increase in its TVL.
According to data from DefiLlama, the total value locked (TVL) across decentralized finance (DeFi) protocols has hit a two-year high. This surge is occurring amidst a general market rally.
At the moment, DeFi TVL stands at $106.45 billion. This represents a 96% increase since the start of the year when evaluated on a year-to-date (YTD) basis.
Lido’s Market Share in Decline
Despite the general increase in TVL, Lido Finance’s share of the ETH staking market is diminishing. Lido Finance is a prominent Ethereum staking provider and the largest DeFi protocol by TVL.
The asset value locked across Lido’s pools has been rising steadily since 12th May. This followed a period in which the protocol’s TVL had dropped to a two-month low of $27.43 billion. However, as cryptocurrency asset values began to increase in mid-May, Lido’s TVL followed suit, growing by 30%.
Despite this, Lido’s share of the ETH staking ecosystem has decreased. Currently, 28.6% of all ETH deposited to the BeaconChain was made through Lido, according to data from Dune Analytics. This is the lowest it’s been since 17th April, 2022.
LDO Token Value and Activity
The governance token of the protocol, LDO, is currently trading at $2.13. Over the past week, the altcoin’s value has increased by over 30%, according to CoinMarketCap.
This increase in the token’s value is due to a rise in demand during this period. Data from Santiment shows a rally in its Relative Strength Index (RSI) since 19 May. At 62.149, LDO’s RSI indicates that buying momentum is currently stronger than selling pressure.
Additionally, there has been a surge in LDO whale activity in recent days. On 21st May, the daily count of LDO whale transactions exceeding $100,000 reached its highest point since 6th March, with 131 such transactions completed.
