- More ETH has been staked through Lido by existing stETH holders.
- LDO has not followed the stocking trajectory as it continued to trend downwards.
Since the Ethereum [ETH] merge, the Lido [LDO] platform has been central to the deployment of the former. Its importance and influence greatly increased, especially after the upgrade of Shanghai. But what has been the far-reaching impact on the platform?
Read Lidos [LDO] Price Forecast 2023-24
Lido sees returning strikers
On May 15, Lido introduced the long-awaited V2 update. This update allowed node operators to withdraw their staked ETH, allowing those who held Lido’s stETH token to exchange it directly for ETH.
As a result, there was a remarkable redemption of 400,000 stETH tokens, equivalent to approximately $721 million. This redemption led to a contraction of the total steth supply.
However, despite this reduction, Lido experienced an impressive influx of new ETH deposits that more than offset the decline. This inflow was so substantial that it pushed the all-time high (ATH) of stETH to a remarkable 7.49 million tokens.
This achievement cemented Lido’s position as the undisputed leader in the liquid staking industry, with its offerings surpassing that of its closest competitor by a whopping 16 times.
New Lido addresses with stETH fluctuate between 230-590/day, which is more or less unchanged YTD.
This leads us to conclude that many new deposits through Lido are driven by existing stETH token holders increasing their exposure. pic.twitter.com/AoW2l004kA
— glassnode (@glassnode) July 6, 2023
In addition, the number of new Lido addresses with stETH tokens showed a consistent pattern throughout the year, ranging from 230 to 590 per day, per Glasnode. This indicated that a significant portion of new deposits through Lido were driven by existing stETH token holders looking to increase their exposure to the platform.
The current share of the restocking market
According to the latest data from Dune analysis, Lido had the largest market share in ETH staking at the time of writing. It commanded about 31.9% of ETH’s stake, cementing its dominant position in the industry.
These stats indicated remarkable growth for the platform across different time frames. In the past week alone, Lido saw its market share increase by 2%, indicating a continuous upward trajectory.
Looking at a broader timeline, Lido has seen substantial growth of 7% over the past month and an impressive 63% increase over the past six months.
Lido TVL in a general uptrend
An intriguing trend was observed when examining the Total Value Locked (TVL) in Lido as shown by Defillama. The chart revealed that the TVL was on an upward trajectory following the activation of the ETH withdrawal functionality.
This was consistent with data from Glassnode, which reported that users are betting more on triggering withdrawals. Also, the TVL in Lido was over 14 billion at the time of writing.
How much are 1,10,100 LDOs worth today?
LDO not impressed
However, the platform’s native token, LDO, is showing a less favorable trend based on the daily timeframe chart. At the time of writing, LDO was trading at around $1.89, reflecting a nearly 1% drop in its value.
Moreover, the token closed with a loss of more than 7% in the previous trading session. This price movement has further pushed the Relative Strength Index (RSI) down, indicating an emerging bear trend.
Source: TradingView