- Even amid market volatility, activity on Lido continued to surge.
- Interest in stETH and LDO tokens has decreased.
Lido (LDO) has maintained its dominance in the DeFi sector for quite some time. Despite securing the top spot in the DeFi sector, Lido Protocol’s growth has shown no signs of stagnating.
growth in every way
Lido’s growth was highlighted by a significant surge in the number of daily active addresses within its network.
Recent data shows a 718% increase in daily active users on Lido over the past three months, highlighting the significant expansion and engagement within the platform.
Lido has seen a huge increase in daily active users over the last 3 months… +718% pic.twitter.com/o9Q0DQ44wq
— hitesh.eth (@hmalviya9) February 5, 2024
This surge in activity has led Lido Protocol to see a significant 40.9% increase in revenue generated over the past 90 days.
The increase in revenue not only indicated the economic resilience of the platform, but also suggested a positive correlation between user activity and the financial success of the protocol.
The surge in network activity can be partially attributed to a significant decrease in average fees per user (AFPU) on the Lido network.
According to data from Token Terminal, AFPU has decreased by 88% over the past month.
These fee reductions mean a more cost-effective experience for users, potentially attracting a larger audience and encouraging increased engagement.
Reduced financial burden on users and interest in staking may have contributed to Lido’s recent growth.
Source: Token Terminal
surge in development
Development activity on the Lido network has also increased.
AMBCrypto’s analysis of token terminal data shows that the number of core developers actively contributing to Lido has increased significantly by 18% compared to the previous week.
At the same time, the protocol has seen a significant surge in code commits, recording an impressive 54.5% increase over the same period.
This surge in development activity signals positive momentum within the Lido ecosystem.
These developments often translate into improved protocol stability, security, and the potential introduction of new features.
Source: Token Terminal
token status
Lido’s popularity and success has been primarily driven by growing demand for stETH, a token that allows users to stake Ethereum (ETH).
Nonetheless, certain indicators have pointed to challenges for stETH, particularly reflected in declining network growth. Reduced network growth means less new user interest in the token.
If this trend continues, there could be a negative impact on the protocol, potentially negatively impacting overall performance and user engagement.
Source: Santiment
However, things may soon change for stETH. Through several recent collaborations, Lido was able to bring a wrapped version of stETH to Binance (BNB).
This could help stETH see more adoption in the future.
that much @LidoFinance DAO voting is complete + not closed.
suggestion @axl_foundation + @wormholecrypto Approved to import Liquid Staked ETH (wstETH). @BNBChain 🦾
At first it just connects @BNBChainHowever, other EVM chains may be supported in the future.
Here’s what it means 🧵 👇 pic.twitter.com/hZyw5wZ3xX
— Axelar Network (@axelarnetwork) January 25, 2024
Realistic or not, the market cap of LDO in BTC terms is:
LDO token is trading at $2.74 and has seen its price drop by 15.64% over the past month. The percentage of large addresses holding tokens has also decreased.
This suggests that whale interest in LDO tokens has decreased over the past few days.
Source: Santiment