In about three days, Ethereum is expected to transition from a Proof-of-Work (PoW) blockchain network to a Proof-of-Stake (PoS) version via The Merge. Prior to the transition, liquid staking project Lido has seen much more activity as the value set in the protocol is up more than 13% this week. Additionally, the project’s Lido-Dao governance token is up 25.4% against the US dollar over the past seven days.
Lido TVL jumps 13% higher this week, the project’s wrapped Ether accounting for more than 30% of Ethereum staked
Last week, Bitcoin.com News reported on the decentralized finance (defi) Lido project as the project saw more demand ahead of The Merge. Lido Finance is a liquid staking project that allows people to package their crypto assets to earn a staking return, but the process also allows owners to hold the assets without custody and trade them as well .
Lido offers liquid staking solutions for blockchains such as Ethereum, Solana, Polygon, Polkadot, and Kusama. However, most of the value locked in Lido comes from locked ether, as ETH accounts for $7.61 billion of Lido’s $7.81 billion total value (TVL).
During the last seven days, defillama.com metrics show that Lido’s TVL has increased by 13.08% and TVL has increased by 2.43% in the last 24 hours. While Makerdao is the largest defi log today, Lido is the second largest defi log in terms of TVL stats on 9/11.
Ether alone locked in Lido’s application accounts for 12.60% of the $60.38 billion TVL in Defi today. Lido’s wrapped ether derivative token STETH is the 13th largest market cap among 12,907 tokens valued at $1.1 trillion. Lido’s governance token Lido Dao (LDO) is up 25.4% over the past two weeks.
Three major exchanges and 8 Ethereum 2.0 pools
Data from Dune Analytics shows that Lido is the largest depositor on the Beacon chain, with 30.3% of deposits coming from Lido Finance. Coinbase is second only to Lido with 14.5% of Beacon chain deposits and Kraken has 8.3%.
Coinbase recently launched a liquid staking token called Coinbase Wrapped Ethereum (CBETH), and in mid-August, a market analyst from JPMorgan said Coinbase could be a major beneficiary of Ethereum’s merge transition. At press time, 13,638,351 ethers are locked in the ETH 2.0 contract and there are 426,198 validators. 30.49% of the 13.6 million ETH staked is staked through Lido Finance.
In addition to massive exchanges like Coinbase, Kraken, and Binance, Lido competes with Stkr, Sharedstake, Stafi, Stakewise, Cream, Stakehound, and Rocketpool. Between Lido, Rocketpool, Stakehound, Stakewise, Stafi, Sharedstake and Stkr is approximately $8.11 billion.
While Lido commands 30.49% of the ETH stake, the aforementioned ETH 2.0 pools make up 33.11% of the stake today. Today, 4,585,038 locked ethers are held between the eight ETH 2.0 pools.
What are your thoughts on the recent Lido Finance action and the amount of ether eight pools have been holding? Let us know what you think about this topic in the comment section below.
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