Lido Finance x.com/LidoFinance/thread/1838457310764548515″>reported The total value locked (TVL) of ethereum rose by 10.83% over the past week, reaching $25.18 billion as of Sept. 23. This growth is primarily attributed to a surge in the price of the ethereum token, which boosted the value of staked assets across the platform. Despite the overall rise in TVL, a net total of 26,528 eth was not staked over the same period, indicating that some users chose to withdraw their assets.
The seven-day annual rate for staked Ether (stETH) increased by 27 basis points to 3.17%. This rally reflects increased activity on the ethereum network, which can lead to higher staking rewards due to increased transaction fees distributed to validators.
Trading volume for stETH and wrap stETH (wstETH) also increased significantly, rising 27.49% to $920.29 million. The increased trading volume suggests growing liquidity and interest in staked Ether derivatives within DeFi markets.
Bridged wstETH (a representation of stETH on other blockchain networks) decreased by 2.04%, totaling 191,498 wstETH across multiple chains. The distribution of wstETH varied across different networks:
| Grid | Amount of wstETH | Change (%) |
|---|---|---|
| Decision | 85,086 US dollars | -1.56% |
| Optimism | 36,628 wstETH | -0.85% |
| Base | 27,689 wstETH | -5.07% |
| Scroll | 20,490 wstETH | -0.65% |
| Polygon | 11,967 wstETH | +5.65% |
| Line | 3,818 US dollars | -0.72% |
| BNB Chain | 2,802 US dollars | -31.46% |
| zk synchronization | 1,844 US dollars | -1.54% |
| Cosmos | 1,168 wstETH | +0.01% |
Notably, the BNB chain saw a substantial 31.46% decrease in wstETH holdings, which may indicate a shift in user preference or strategic reallocations to other networks. In contrast, Polygon saw a 5.65% increase, suggesting growing user engagement with its layer-2 scaling solutions.
wstETH movements across various networks reflect the dynamic strategies of DeFi participants seeking optimal yields and network efficiencies. The decline in wstETH on bridge suggests a cautious approach by users. The significant eth divestment could also indicate profit-taking or repositioning in anticipation of market shifts.
The amount of stETH in lending pools and re-staking protocols remained relatively stable at 2.79 million and 1.36 million stETH, respectively. This stability indicates a sustained reliance on these platforms to generate passive income through lending and staking activities. However, liquidity pools experienced a significant 22.22% reduction in stETH holdings, decreasing to 74,800 stETH. The drop in liquidity pool participation could impact transaction efficiency and slippage rates of stETH pairs on decentralized exchanges.
Understanding these patterns is critical for stakeholders to effectively navigate the DeFi landscape. The interplay between staking rewards, network activity, and asset allocation strategies significantly shape market forces.
