Lido’s Staking Dominance Declines Amid Layer 2 Inflows

Lido Pulls Back as Blast Reaches New Highs
Table of Contents

The cryptocurrency ecosystem is a field where fluctuations and changes are commonplace, in this case Lido DAO has seen important changes in recent days.

Recently, an interesting trend has been observed in Lido’s participation in the staked Ethereum supply, while the Total Value Locked (TVL) of the Layer 2 network, Blast, has registered impressive growth.

According to data from Dune Analytics, Lido’s share of the staked Ether supply has decreased to 31.8%, from 32.3% three weeks ago.

This marks a drop in its dominance, despite the continued flow of assets into Layer 2’s controversial network, Blast.

Blast’s sustained growth has raised some concern among supporters of decentralization on Ethereum, who feared that Lido’s dominance would surpass the 33% threshold.

The emergence of Blast in November surprised the market by announcing rewards for early depositors, offering native returns in the form of staking rewards through Lido or stablecoin interest through MakerDAO, along with Blast points.

Even though assets are locked until the official launch in February, this announcement led to a significant increase in deposits.

Blast’s initial success has come under fire, especially when Lido’s dominance surpassed 32%

A situation that Ethereum researchers have warned as potentially detrimental to the network’s decentralization.

Lido's Staking Dominance Declines Amid Layer 2 Inflows

However, while Blast’s Total Value Locked (TVL) has climbed to new highs, reaching $1.12 billion on December 29 following a flow of $54 million, Lido’s dominance has receded.

This increase in TVL has been driven by the arrival of almost 86,000 users who have deposited their assets on the Layer 2 network.

Lido DAO’s LDO token is currently trading at a value of $2.93, marking an increase of 8.20% in the last day and an impressive increase of 35.92% in the last week, according to data from CoinMarketCap.

This growth is even more notable when looking at a 205.43% increase in the token’s value over the past year.

This data reflects a significant bullish trend for the LDO token in the short and long term, highlighting a notable and sustained performance in the market.


Follow us on Social Networks

Crypto Tutorials

Crypto Reviews