• Interest in Liquid staking derivatives has declined
• Lido protocol’s TVL managed to grow from 8.069 billion to 10.09 billion
• Price of the LDO token has risen by 18.55%
Decline In Interest In Liquid Staking Derivatives
The overall amount of ETH staked through liquid staking derivatives has recently declined from 304,684 to 65,664 according to Dune Analytics‘ data. This decline in activity could be seen as an opportunity for bears to bet against LDO and take short positions against the token.
Lido Protocol’s TVL Growth
Despite the declining interest in Liquid staking, Lido’s TVL managed to grow from 8.069 billion to 10.09 billion on the charts due to the appreciating price of ETH also had a role to play in the TVL’s spike. However, Lido’s dominance in the liquid staking derivates sector fell as other competitors such as Coinbase and Kraken enjoyed a high share too and captured 17.7% and 7% of the market respectively.
Fall In Network Growth & Velocity
Due to volatility caused by USDC saga, overall reserves of the Lido protocol also fell including both ETH and stETH while daily active users on network depreciated by 10% over past week causing total earnings of protocol dropped by 11%. This suggests that despite low activity & lack of interest from new users, price of LDO hiked significantly rising 18.55%.
LDO Market Cap In BTC Terms
Realistic or not, here’s is what market cap for LDO looked like written in terms of BTC according Santiment data which shows a promising picture for future performance if investors are able hold onto tokens through volatility & ride out bearish trend .
Pessimistic Outlook Despite Spike In Prices
Metrics projected a pessimistic outlook for larger staked ETH market reflecting regulatory concerns which may impact positive performance seen over past week by Lido despite rise in its TVL & prices suggesting that although there have been positive developments surrounding project but uncertainty still looms large within sector .