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Lido Finance, a decentralized finance protocol, has seen a significant increase in its Total Value Locked (TVL), which recently jumped almost 7%. This growth is attributed to the combination of increased stake deposits and the appreciation in the values of cryptocurrencies like Ethereum (ETH) and Polygon (MATIC), which climbed 7% and 6%, respectively.
The protocol’s TVL reached $21.32 billion, marking a substantial monthly increase of around a quarter. This TVL expansion is partly due to the fact that Lido processed net new deposits totaling over seventy-six thousand ETH last week, representing half of the market’s staking activity. In contrast, Coinbase, another major player in the cryptocurrency sector, only managed to capture 17% of this market share.
Binance, recognized as a leading cryptocurrency exchange, has been at the forefront of ETH withdrawal volumes with thirty-two thousand ETH unstaked. Additionally, annual percentage rates (APRs) for staked Ethereum have been on the rise since the beginning of December.
Layer 2 platforms have seen varying degrees of activity with staked ETH (stETH). While Arbitrum saw a marginal increase in bridged stETH of one hundredth of a percent and Polygon saw an increase of one percent, Base saw a notable increase of thirty-six percent. However, Optimism saw a slight decline of less than half a percent.
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