Ethereum’s Lido Finance Sees 7% Increase in Total Locked Value (TVL)

Ethereum (ETH) leader liquid staking protocol Lido Finance (LDO) saw an increase in total locked value (TVL) of nearly 7% last week. This may be due to the increase in ETH and Polygon (MATIC) prices and an increase in stake deposits in the protocol. Between November 27 and December 4, the values of ETH and MATIC increased by 7% and 6% respectively.

DefiLlama Reports

According to DefiLlama’s data, at the time of writing, Lido’s TVL was around $21.32 billion, marking a 25% increase last month. Following a brief drop in net deposits to the Ethereum Beacon Chain through Lido, the DeFi protocol regained its position as the most staked protocol.

According to Dune Analytics data, Lido recorded a net new ETH staking deposit of 76,961 during the seven-day period under review. Last week, Lido accounted for 50% of all ETH deposits made. The token is followed by Coinbase, which had only a 17% market share of all net deposits during that period.

Leading cryptocurrency exchange Binance saw the most ETH withdrawals last week. Data from Dune Analytics showed that 32,000 ETH previously staked was withdrawn from the platform in the last seven days. The annual percentage rate (APR) earned from holding the staked Ethereum has been steadily increasing since the beginning of the month.

Status of Layer 2 Projects

In addition to the recorded TVL growth during the week, the protocol saw growth in distributions in leading Layer 2 platforms in the form of bridged stETH amounts. Data from Dune Analytics showed a 0.01%, 1%, and 36% increase in stETH bridged to Arbitrum (ARB), Polygon, and Base, respectively.

On the other hand, Optimism (OP) recorded a 0.37% decrease in bridged stETH amount during the period under review. This month, transaction fees paid by Lido users reached a total of $11.49 million, resulting in $1.15 million in revenue. In November, the total transaction fee on the staking platform was $62 million, with total revenue recorded at $6 million.