Lido Becomes the Crypto Project with Highest TVL
- Lido Finance has overthrown MakerDAO as the DeFi platform with the highest Total Value Locked (TVL).
- Following the transition of Ethereum from proof-of-work to proof-of-stake consensus, Lido has become extremely popular.
- The native token of the platform, LDO, jumped more than 17% in the last 24 hours.
- the decentralized finance protocol has $5.95 billion in total assets staked.
The Total Value Locked (TVL) of a decentralized finance (DeFi) project is a measure of its health and popularity, and it also represents the price of the native token of the project along with its supply and the activity on the platform. While MakerDAO had dominated the market with its highest TVL for quite some time, Lido Finance (LDO) has overthrown Maker to become the DeFi project with the highest TVL.
Lido Finance is a liquid staking solution for Ethereum, the second-largest cryptocurrency network. It allows investors in Ether (ETH) to stake their tokens and receive rewards for the same. There are no minimum deposits or maintaining of infrastructure and stakers can participate in on-chain activities to earn additional rewards.
Following the transition of Ethereum from proof-of-work to proof-of-stake consensus, Lido has become extremely popular as more and more ETH holders stake their money with the platform to earn rewards. According to data from DeFiLlama, the Lido liquid staking now contains $5.9 billion in TVL, which is much higher than MakerDAO’s $5.89 billion and AAVE’s $3.7 billion.
As per the data on the website of Lido Finance, the decentralized finance protocol has $5.95 billion in total assets staked, followed by $254 million in rewards paid. Furthermore, the protocol currently has only 242,509. It is crucial to note here that if the numbers are so high in a bearish market which has been tarnished by the collapse of Celsius Network and FTX, a bull market might put Lido on a global map.
According to the project’s website, there was around $5.865 billion staked in Ether (ETH), followed by $23.3 million staked in Solana (SOL), $44.4 million in Polygon (MATIC), and $11.354 million in Polkadot (DOT).
As per an earlier report from BitcoinWisdom, Lido has plans of expanding itself on L2, and in July it announced the expansion of stETH across the L2 DeFi ecosystem. This allowed stakers to stake with lower fees and provided them the access to a new set of DeFi applications to increase yields.
Following the surge in TVL of the DeFi platform, the native token of the platform, LDO, jumped more than 17%, and as of 2:53 am, the price of 1 LDO stands at $1.17. The trading volume of the token went up 434% while the market cap of the crypto coin stands at $5.9 billion.