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Lido (LDO), the leading Liquid Staking Derivatives (LSD) protocol, recently made waves in the crypto community by enabling Staked ETH (STETH) withdrawals. Expectations were high as many expected an increase in stakers unstaking their ETH.
However, contrary to these predictions, Lido has seen a significant increase in ETH deposits, reaching record-breaking levels. This surge has also been reflected in the native token of the protocol which has registered a rally of over 20% in the past week.
ETH Deposits Climb To New All Time High
Despite the start of STETH withdrawals, Lido experienced an increase in ETH deposits, defying expectations of widespread volatility. On Friday, the platform saw a significant milestone as the total number of ETH deposited reached an all-time high.
According to statistics Provided by Lido, an astonishing 6,373,289 ETH are currently at stake with Lido, equivalent to over $11.5 billion. Interestingly, while ETH deposits on Lido continue to grow, ETH withdrawals have held steady around the 450,000 ETH mark, as reported statistics from Nansen.
It is worth noting that these withdrawal requests have not yet been processed, which contributes to the overall stability of stETH withdrawals. This trend raises questions about the anticipated volatile craze, which calls for a closer examination of the factors influencing stackers’ decisions.
As the foremost liquid staking derivatives protocol, Lido holds an impressive 75% market share, outpacing its competitors in the liquid staking (LSD) space. In particular, according to data from Nansen, Coinbase and Rocket Pool, the second and third places were occupied.
Furthermore, while it may sound like positive news that ETH deposits are increasing while withdrawals are flat, it is worth noting that there are several reasons behind this so as not to get carried away. On the one hand, the steady return can be attributed Pending processing of withdrawal requests.
On the other hand, it can be attributed to Stakers’ long-term commitment to the protocol and the attractiveness of Lido’s offerings amid a volatile crypto landscape.
Lido up 20% in last week
In line with its increase in market share, the price of Lido native token LDO has increased by more than 20% in the past week. Lido traded from a low of $1.81 last Friday to a high of $2.48 on Wednesday.
The market capitalization of LDOs has also registered huge gains in the last 7 days. LDO’s market cap has increased by 20.7% from a cap low of $1.5 billion to over $2 billion on Wednesday. Meanwhile, the daily trading volume of LDOs remained only between $60 million and $100 million throughout the week.
Interestingly, the asset is down by 4.4% in the last 24 hours. The LDO currently trades slightly above $2 with a price of $2.18 against a price of $2.18 with a 24-hour trading volume of $62.1 million.
Featured image from Analytic Vidya, chart from TradingView
