Lido’s Total Value Locked Sees Slight Dip Amid Changing DeFi Landscape

• A decrease in SOL deposits influences a 1.1% dip in Lido’s TVL.
• DeFi pools possess 36.21% of stETH supply, down by 0.6pp weekly.
• AAVE V3 wstETH pool showcases a remarkable 5.6% weekly growth.

Over the past week, there has been a notable shift in Lido’s financial position. The platform’s Total Value Locked (TVL), a key metric indicating the total assets staked or deposited in a DeFi protocol, has seen a slight contraction. This 1.1% decline was influenced primarily by decreased SOL staking deposits and an overall slump in token prices. By the week’s end, Lido reported a TVL of $14.77 billion, highlighting its dominant stance in the DeFi space.

Lido DAO, a prominent player in the decentralized finance (DeFi) realm, shared a twitter post providing the latest insights into its performance.

Delving into the specifics, one of the salient highlights from the past seven days is the considerable volume of ETH directed towards the Ethereum Beacon Chain through Lido. The protocol witnessed an influx of 60.2k ETH in just a week, solidifying Lido’s preeminent position as the preferred choice for new deposits on the Beacon Chain.

The 7-day moving average for stETH APR, an annual percentage rate for staking ETH, showcased an upward trend. This metric, indicative of the potential earnings for stakers, rose to an appreciable 4.16%. This increment could be attributed to a moderate surge in EL rewards which are distributed among stakers.

Diving deeper into stETH’s interaction within the DeFi sector, the week brought with it an interesting revelation. The aggregate of (w)stETH held in DeFi pools amounted to an impressive 2.89 million, which represents 36.21% of the total stETH supply. This figure, while substantial, marks a 0.6 percentage point reduction in share from the previous week.

One of the noteworthy facets in the Layer 1 and Layer 2 dynamics was the wstETH’s presence. The week saw a 5.17% growth of wstETH on L2, pushing the number to 133,164 wstETH. Additionally, within the expansive DeFi universe, AAVE’s V3 wstETH pool exhibited significant growth. The pool expanded by a considerable 5.6% within the week, reaching a volume of 406,159 wstETH.

While fluctuations and shifts were observed in various metrics, the stability of the Lido platform was evident in one particular area – the absence of liquidations. Over the past week, there were no recorded liquidations, indicating a robust and secure environment for its users.

In the latest market update, the Lido DAO token is trading at $1.83, displaying a marginal 0.17% decline over the past 24 hours. The token has found itself amidst an intense showdown between bullish and bearish forces, with the latter presently holding a slight advantage. This ongoing battle has contributed to the token’s weekly drop of 0.25%, highlighting the inherent volatility of the cryptocurrency markets.

Furthermore, within 24 hours, the trading volume for the Lido DAO token has reached an impressive $79,870,872. Holding its position as the 34th-ranked cryptocurrency on CoinMarketCap, Lido DAO maintains a substantial market capitalization of $1,608,780,071. Notably, the circulating supply of LDO coins stands at 878,820,959, while the maximum supply has been capped at 1 billion.

In conclusion, while Lido experienced certain undulations in its metrics, its dominant position in the DeFi space remains uncontested. As the landscape evolves, Lido’s resilience and adaptability will be key factors to watch. Investors and enthusiasts alike eagerly anticipate how Lido would navigate these changes and continue shaping the future of decentralized finance.