Lido TVL rises, backed by increasing ETH deposits

  • Lido’s TVL climbed by 1.28% in the last seven days, as ETH deposits on the protocol rose. 
  • Its native token, LDO, however, experienced slow accumulation.

The total value locked (TVL) in Lido Finance [LDO], a liquid staking protocol for Ethereum [ETH], increased by 1.28% in the past week, according to DeFiLlama. This represented the largest increase among the top five decentralized finance (DeFi) protocols by TVL, according to the data on-chain data provider. 

Realistic or not, here’s LDO’s market cap in BTC’s terms

Still the largest DeFi protocol by TVL, Lido’s TVL was $14.06 billion at press time.

The increase in Lido’s TVL in the last week was primarily due to an uptick in ETH deposits on the protocol during the period under review. This occurred despite the significant price volatility that has plagued the leading altcoin since the deleveraging event of 17 August. 

According to data from Dune Analytics, ETH deposits on Lido totaled 185,500 over the last seven days, making it the protocol with the highest net new deposits on Ethereum during that period. Coinbase and Rocket pool trailed behind it with deposits of 28.096 ETH and 11,800 ETH.

Source: Dune Analytics

However, despite the TVL uptick, Lido’s stETH APR assessed on a 7-day moving average experienced a decline. As of 28 August, this was 3.80%, falling by 7% in the preceding week.

Source: Dune Analytics

As noted by Lido in a post on Twitter,

“The weekly Moving Average (MA) of stETH APR dropped to 3.81%, affected by a reduction in EL rewards.”

On Layer 2 (L2) platforms, the tokenized version of staked Ether-wrapped stETH [wstETH] grew in the last week. Per Dune Analytics, wstETH saw an increase of 0.05% over the past seven days on Optimism [OP].

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On Polygon [MATIC], the value of wstETH grew by 0.98%. On Arbitrum [ARB], however, a 1.55% decline was recorded.

How much are 1,10,100 LDOs worth today?

LDO suffers due to…

Due to its statistically significant positive correlation with leading coin Bitcoin [BTC], LDO’s value has also suffered a decline due to the futures market leverage flush-out suffered by BTC on 17 August. Since then, the token’s price has dropped by 7%.

On a D1 chart, LDO distribution remained rampant among daily traders. The token’s Relative Strength Index (RSI) and Money Flow Index (MFI) were spotted at 33.23 and 32.50, respectively. This showed that selling pressure outweighed buying pressure among LDO holders. 

Source: LDO/USDT on TradingView

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