Lido Finance, the forerunner of the liquid staking derivatives market, has demonstrated its project’s growing strength and influence within the ecosystem by announcing a surge in its Total Value Locked (TVL) in its latest monthly report.
Within a month, the liquid derivatives market witnessed a substantial increase of over $15 billion in its TVL, a surge the company has not experienced since May 2022. However, the wave indicates a significant influx of assets into the platform. Also, the recent development reflects investors’ confidence and underscores the effectiveness and attractiveness of Lido’s protocol.
Additionally, the report showcases the popular liquid staking protocol’s remarkable adoption rate. The project’s innovative approach and user-friendly interface have garnered widespread adoption and acceptance, leading to a noteworthy expansion in its user base. Notably, the protocol’s commitment to providing a seamless staking experience has contributed to it being embraced by a diverse range of stakeholders.
Lido Fires Up Despite Adversity
The report also revealed that the protocol experienced large monthly inflows of Ethereum (ETH) deposits, representing over a 50% increase from June, despite the activation of ETH withdrawals through Shapella Upgrade earlier this year. As such, it appears that it has poised to surpass 8 million staked ETH this month.
Recall that in March, Lido DAO, the governance token used within the ecosystem for voting purposes increased by 18% despite a slight dip in its TVL.
Furthermore, Lido has also been gaining enormous attention over numerous developments the platform is deploying to improve its network. Since Ethereum’s transition from Proof-of-Work (PoW) consensus to Proof-of-Stake (PoS) consensus in 2022, the demand for LDO has increased dramatically.
Looking ahead, Lido Finance is well-positioned to continue its upward trajectory. The project’s consistent growth and unwavering commitment to excellence pave the way for even greater achievements in the future.
Lido Finance to Introduce NFTs Into Unstaking Process
Recently, the protocol unveiled plans during its Node Operator Community Call to release a Non-Fungible Token (NFT) representing a user’s withdrawal request amount as part of the process of unstaking their ETH.
Meanwhile, Lido DAO upgraded to version 2, allowing users to unstake their ETH and receive ETH at a 1:1 ratio. The upgraded version would offer users a Lido-issued NFT, mainly as an intermediate step between requesting to unstake and claiming ETH.
