Why Lido is up today

Key points: 

• Lido is Ethereum's liquid staking solution. It allows users to stake their ETH tokens with no minimum deposit. 
• Lido Finance's native LDO token is up 15% on the day and it has increased its market capitalization to $943.7 million.
• The total value locked in logs recently reached $5.98 billion, surpassing Maker.
• Lido currently has the highest personal TVL in the DeFi ecosystem. 

Lido Finance's native LDO token is currently the biggest gainer in the cryptocurrency market. It is up 15% on the day and is trading at $1.15 at press time. Looking back, the 39th-ranked coin increased its market capitalization to $943.7 million.

 

At the same time, the total market capitalization of DeFi is also recovering on Monday. Green candles have appeared consecutively on the short-term frame chart. Earlier today, the combined valuation of all DeFi tokens reached $31.299 billion. After a slight pullback, it was trading at $31.22 billion at press time.

The community is very excited about the latest in Lido Finance. The total value locked in logs recently reached $5.98 billion, surpassing Maker. Therefore, Lido currently has the highest personal TVL in the DeFi ecosystem. As the chart below shows, the value of assets tied to Lido has risen by almost 2% over the past day.

TVLs on other platforms like Aave, Curve, and Uniswap are much lower, between $3.7 billion and $3.3 billion.

Liquid Staking on Lido

Lido is Ethereum's liquid staking solution. It allows users to stake their ETH tokens with no minimum deposit. This means that a user does not necessarily need to own 32 ETH in order to play games on Lido’s platform.

Lido’s story continues to unfold as Ethereum’s Shanghai update is scheduled for March. EIP 4895 is part of the aforementioned upgrade and will enable Beacon Chain Staked Ether withdrawals.

In fact, a recent Nansen report shows that the value of ETH collateralized alone is equivalent to the top 6 cryptocurrencies by market capitalization. It further added:

“Staked ETH is thus the first yield-bearing instrument to reach significant scale in DeFi, and has the potential to both significantly grow and radically transform the ecosystem in the coming years.“

In addition, traders take advantage of ETH collateral instruments through various liquid collateral derivatives. Notably, over 5.7 million ETH was staked through LSD platforms such as Lido and Rocket Pool. Nansen noted that it wasn’t until after The Merge that the pace of adoption “gained momentum” and owners “engaged meaningfully.”