Lido Finance, a liquidity staking protocol that supports various protocols including Ethereum and Solana, remains the most dominant decentralized finance (DeFi) app as of April 14.
Lido Finance TVL Increase
Total Value Locked (TVL) on Lido, a measure of all assets managed by a dapp, remained at more than $12.6 billion.
Notably, less than 24 hours after the activation of the Shanghai Update on the Ethereum blockchain, Lido Finance has added more than $1.1 billion, representing around 10% of the total TVL.
With the Shanghai update, Ethereum made a full transition to become a proof-of-stake blockchain, allowing participants and validators to withdraw their coins. Prior to this update, more than $30 billion of ETH had been locked on the beacon chain.
The addition of more than $1 billion means Lido Finance’s TVL is up 24% in the last month of trading and roughly five percent in the last 24 hours.
At this rate, it means that Lido Finance is galloping ahead of other DeFi protocols, including MakerDAO, a decentralized money market; Aave, a loan protocol; Curve, a decentralized stablecoin exchange; and Uniswap, one of the leading decentralized exchanges that recently launched on the BNB chain.
DeFi and asset prices recover
With DeFi users apparently moving their coins to Lido Finance, LDO, the governance token of the liquidity staking protocol, also rose in tandem.
Since the critical Ethereum update on April 13, LDO prices are above about 7%, peaking at around $2.6 on April 14 before pulling back to spot levels.
However, the token is up 23% from the March 2023 lows and has more than tripled, up 175% from the December 2022 lows.
At this rate, LDO has outperformed bitcoin (BTC) and ethereum (ETH), both of which have also posted decent gains from 2022 lows.
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Overall, the uptick in TVL of major DeFi dapps match with a rebound in the entry of assets into the sector. As of writing on April 14, users had locked up more than $53.4 billion of various assets, an increase of nearly 40% from January lows when the sphere’s TVL sat at about $38.8 thousand. millions.
The fall in assets from late Q4 2021 to 2022, partly combined with strict regulations on protocols and trustless hacks, decimated DeFi activity. During the last bull cycle, DeFi TVL surpassed $175 billion with Ethereum being the dominant network.
