TL;DR
- Lido DAO surpasses Ethereum fees thanks to increased activity and use of scalability layers.
- The re-staking program is growing and competes with EigenLayer.
- The fat app trend is attracting more users and generating significant revenue for DeFi protocols.
Lido DAO has achieved a major milestone by surpassing fees paid on the Ethereum mainnet, driven by an increase in activity and use of second-layer scalability solutions.
This development has positioned Lido DAO as the undisputed leader in the liquid staking space, managing over 40% of all staked ETH.
fat applications pic.twitter.com/HWQCh6FDiA
— Token Terminal (@tokenterminal) June 23, 2024
The growing popularity of deposits on Lido has increased fees, which in turn has raised interest in its re-staking token, stETH.
The success of LDO DAO lies not only in its ease of use and first-mover advantage in the market, but also in the support of renowned platforms, which simplify the staking process for users.
According to recent data from DappRadar, Lido DAO has seen fluctuating activity over the past 30 days.
The number of Unique Active Wallets (UAW) has been 9,000, although this represents a decrease of 55.16%.
Transactions have also decreased by 48.28%, totaling 11,910.
However, the volume has increased significantly by 85.84%, reaching $1.43 billion, indicating strong asset movement within the platform.
The balance, however, has decreased by 10.5%, standing at $389.17 million.
Expansion of the Lido DAO Re-staking Program
One of the key factors behind the increase in fees and activity is its growing re-staking program.
Traditionally, stETH was primarily used as collateral in third-party applications.
However, Lido DAO has launched a native re-staking program, allowing stETH to be used as an additional layer of security for new applications.
This not only increases the utility of stETH, but also positions Lido DAO to compete directly with EigenLayer, attracting a new set of applications.
Additionally, LDO DAO has announced a partnership with Mellow Finance to create special stETH vaults and issue a new liquid re-staking token (LRT) in exchange for locked stETH collateral.
This move not only diversifies Lido DAO’s product offering, but also expands its validator base, improving network security and decentralization.
Despite the volatility in the prices of the LDO and stETH tokens, which have seen some fluctuation recently, confidence in the market remains high.
The LDO token has remained at $2.09, while stETH has traded on par with the ETH market price, around $3,372.11, albeit at a slight discount at times in the last quarter.
Lido DAO continues to solidify its position as a key player in the DeFi space, with a focus on innovation and expansion of its staking and re-staking services.
This strategy not only attracts more users, but also ensures that Lido DAO remains a leader in generating income within the crypto ecosystem.
