Lido (LDO), the leading liquid staking derivatives (LSD) protocol, recently made waves in the crypto community by enabling staked ETH (stETH) withdrawals. Expectations are high as many anticipate an influx of stakers withdrawing their ETH.
However, contrary to these predictions, Lido has witnessed a remarkable increase in ETH deposits, reaching record-breaking levels. This surge is also reflected in the protocol’s native token which recorded a rally of more than 20% last week.
ETH Deposits Soar to New All-Time Highs
Despite the introduction of stETH withdrawals, Lido experienced a surge in ETH deposits, defying expectations of widespread unstaking. Last Friday, the platform witnessed an important milestone as the total amount of ETH deposited hit an all-time high.
According to data provided by Lido, a staggering 6,373,289 ETH are currently staked in Lido, equivalent to over $11.5 billion. Interestingly, while Lido’s ETH deposits continue to rise, stETH withdrawals remain stagnant around the 450,000 ETH mark, as reported by data 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 expected unstaking frenzy, prompting a closer examination of the factors that influence stakers’ decisions.
As the most significant liquid staking derivatives protocol, Lido holds an impressive 75% market share, surpassing its competitors in the Liquid staking (LSD) space. In particular, according to data from Nansen, Coinbase and Rocket Pool trail behind, occupying the second and third positions.
In addition, although it seems like positive news that the ETH deposit is increasing while the withdrawal is flattening, it is worth noting that there are many reasons behind it not to be carried. On the one hand, the strengthened withdrawal can be attributed to the pending processing of withdrawal requests.
On the other hand, it can be attributed to long-term commitment of stakers to the protocol and the beauty of Lido’s offerings amid the ever-changing crypto landscape.
Lido Soared 20% In The Last Week
With its surge in market share, the price of LDO’s native Lido token has experienced an uptrend in the past week of more than 20%. Lido surged from a low of $1.81 seen last Friday to trade as high as $2.48 on Wednesday.
LDO market capitalization has also recorded huge gains in the last 7 days. LDO’s market cap surged 20.7% from a low cap of $1.5 billion to a high of over $2 billion on Wednesday. Meanwhile, LDO’s daily trading volume only hovered between $60 million and $100 million throughout the week.
Interestingly, the asset dropped in the last 24 hours down 4.4%. LDO is currently trading slightly above $2 with a price of $2.18 at the time of writing with a 24-hour trading volume of $62.1 million.
Featured image from Analytic Vidhya, Chart from TradingView