Ethereum will transition in three days from a proof of work (PoW), blockchain network, to a proof of stake (PoS), via The Merge. The Lido liquid staking project has seen more activity ahead of the transition. This week, the protocol's value increased by over 13%. The project's lido Dao governance token has risen 25.4% in value against the U.S. Dollar over the past seven days.
Lido TVL jumps 13% higher this week, Project's Wrapped Ether More Than 30% of Staked Ethereum
Bitcoin.com News last week reported on Lido, a decentralized finance (defi), project. The project was seeing increased demand before The Merge. Lido Finance allows users to wrap crypto assets to get a staking return. However, the process also allows owners the ability to keep the assets in non-custodial form and trade them.
Lido provides liquid staking options for blockchains such as Ethereum, Solana and Polygon. Locked ether is the main source of most of Lido’s value, with ETH accounting for $7.61 billion (TVL) of its total $7.81 billion value.
Defillama.com metrics indicate that Lido has seen its TVL increase by 13.08% over the past seven days and have seen it rise by 2.43% in the last 24 hours. Makerdao is currently the largest defi protocols in terms of TVL stats. Lido, however, is the second largest on September 11.
Only 12.60% of the $60.38 trillion TVL in defi today is locked in ether in Lido’s application. Out of 12,907 tokens valued at $1.1 trillion, Lido's wrapped derivative token STETH is the 13th most valuable market capitalization. Lido's governance token lido dao has increased by 25.4% in the last two weeks.
Three Largest Exchanges and eight Ethereum 2.0 Pools
Dune Analytics data shows that Lido is the largest Beacon Chain depositor, with 30.3% of deposits coming from Lido Finance. Coinbase comes in second with 14.5% of Beacon chain deposits, while Kraken is at 8.3%.
Coinbase has recently launched coinbase wrapped Ethereum (CBETH) a liquid staking token. In mid-August, a JPMorgan market analyst stated that Coinbase could be a material benefit of Ethereum's Merge transition. As of press time, 13,638,351 ether is locked into the ETH2.0 contract. There are also 426,198 validators. Lido Finance holds 30.49% of 13.6 million ETH.
Lido competes against other large exchanges such as Kraken, Coinbase, Binance and Kraken. There are approximately $8.11 trillion in value between Lido and Rocketpool, Stakehounds, Stakewisestakewisestaketake, Sharedstaketake, Stafi and Sharedstake.
Lido holds 30.49% of all ETH staked. However, the ETH 2.0 pools aforementioned represent 33.11% today. Today, there is 4,585.038 locked ether in the eight ETH 2.0 pool.
What are your thoughts on the Lido Finance actions and the number of ether eight pools that were held? Please comment below to let us know your thoughts on this topic.
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By: Jamie Redman
Title: 30% of Today’s Staked Ethereum Is Tied to Lido’s Liquid Staking, 8 ETH 2.0 Pools Command $8.1 Billion in Value
Sourced From: news.bitcoin.com/30-of-todays-staked-ethereum-is-tied-to-lidos-liquid-staking-8-eth-2-0-pools-command-8-1-billion-in-value/
Published Date: Sun, 11 Sep 2022 19:30:06 +0000
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