Lido’s TVL surges ahead of Ethereum mainnet upgrade

March 20, 2023 at 6:30 am

Markets

Ethereum (ETH) stakeholders are looking forward to the Shanghai Capella Upgrade that will take place on the Ethereum mainnet in April 2023.

As a result, the total value locked (TVL) on the liquid staking platform Lido Finance has significantly increased. This increase in ETH holders can be attributed to anticipating the release of previously locked ETH tokens.

According to information provided by DefiLlama, Lido’s TVL climbed by 16% over the last month. In addition to that, throughout the last week, this rose by over 11%.

At press time, the total value of the network’s assets was $10.44 billion, which represented a 16.98% share in the decentralized finance (DeFi) ecosystem as a whole.

Lido's TVL surges ahead of Ethereum mainnet upgrade - 1 — LDO TVL charts | Source: DefiLlama

How is lido doing today?

Despite the high TVL, lido seems to have started the week on a low note, having recorded a 4.8% drop in price within 24 hours. Trading at $2.40 as of writing, the assets trading volume had recorded a 14% decrease as the market cap decreased by 4%.

Lido's TVL surges ahead of Ethereum mainnet upgrade - 2 — LDO 24-Hour price chart | Source: CMC

Lido dominates among ETH stakers

For the first time since April 2022, Lido’s share of the ETH staking market fell below 30% as a direct consequence of the contagion caused by the unforeseen collapse of FTX in November 2022. Even though Lido overtook MKR to become the DeFi protocol with the greatest TVL in January, Lido’s share of the ETH staking market remained at 29% during the first two months of the year.

On the other hand, things took an unexpected turn in March when Lido regained its previous market share of 30% and then exceeded it. This has been made possible due to the successful completion of the Shanghai Capella Upgrade on Ethereum’s Goerli testnet and the confirmation of a date of April 12 for the upgrade of the mainnet.

At the time of publication, there were 5,579,744 ETH tokens staked via Lido, representing a market dominance of 31%. An analysis of the token’s price movements on the daily chart indicated a decrease in purchasing pressure, even though LDO’s price increased over the last week, following the overall rise in the cryptocurrency market.