Key Points
- Lido Finance recorded its highest ever monthly fees and revenue in February.
- The significant growth in Ethereum staked led to an increase in Lido’s total value locked (TVL) and staking APR.
Lido Finance, a leading liquid staking protocol, saw its monthly fees and revenue peak in February. This is according to data from DefiLlama.
The surge was largely due to an increase in the amount of Ethereum staked during the last month. Data from CryptoQuant shows that the total value of staked Ethereum rose by nearly 10% during this period.
Ethereum Staking and Lido’s Performance
As of now, there are 31.5 million Ethereum staked, valued at approximately $109 billion.
DefiLlama’s data reveals that transaction fees on Lido came to $80 million in February, a 10% increase from the $73 million recorded in January.
The revenue from these fees during February was $8.02 million, a 9% rise from January, according to on-chain data.
Increased staking activity led to a rise in Lido’s total value locked (TVL). The liquid staking protocol’s TVL surged by 57% in the last month, according to DefiLlama.
Lido’s TVL currently stands at $34 billion, making it the largest decentralized finance (DeFi) protocol by TVL.
Growth in Staking APR
In addition to its recent rally above the $3400 price mark, the increase in Ethereum staking on Lido was also due to a rise in staking Annual Percentage Rate (APR).
Data from a Dune Analytics dashboard prepared by Lido Finance indicates that the APR offered to Ethereum stakers on the platform has been steadily increasing since February 24.
As of now, the staking APR on the platform on a seven-day moving average is 3.42%, which is nearly a 5% increase over the last eight days.
Data from Dune Analytics also reveals a significant decline in withdrawals from Lido this year. Conversely, daily deposits onto the protocol have continued to rise, reaching a year-to-date (YTD) high of 71,000 Ethereum deposits on February 9.
In the last week, net deposits on Lido totaled 48,000 Ethereum.
Dune Analytics data shows that Lido’s market share of the Ethereum staking ecosystem is 31.16%. Of the 986,000 total validators on the Ethereum network, 31% of them staked through Lido.
