How ETH, MATIC and SOL helped Lido gain momentum

• Lido’s TVL rallied by double digits in the last week.
• This was due to the uptick in the prices of ETH, MATIC, and SOL.

Leading liquid staking protocol for Ethereum [ETH], Lido Finance [LDO], saw its total value locked (TVL) surge by over 10% in the past week due to an uptick in the prices of ETH, MATIC and SOL, the protocol noted in its latest weekly update on X (formerly Twitter). 

Between 25 September and 2 October, the values of ETH, MATIC, and SOL increased by 10%,11% and 23%, respectively. 

At press time, Lido’s TVL stood at around $14.82 billion, with a 5% rally in the last month, data from DefiLlama showed.

Some losses and some wins

After several weeks of leading in terms of net new deposits to the Ethereum Beacon Chain, Ether deposits made to the Proof-of-Stake (PoS) network through Lido fell by 48% within the period under consideration. 

According to data from Dune Analytics, new deposits to the Ethereum Beacon Chain through Lido totaled 40,768 ETH in the form of staked coins. In the previous week, this was 78,656 ETH.

Data from Dune Analytics revealed that Figment led with the most ETH deposits of 88,000 ETH between 25 September and 2 October.

Moreover, over the last week, the Annual Percentage Rate (APR) of the protocol’s staked Ether assessed on a seven-day moving average saw a minor decline. At press time, Lido’s stETH APR was 3.61%, logging a 50% decline since its 7.17% peak on 12 May. 

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Apart from its TVL growth, Lido also saw a 1% uptick in the amount of wrapped staked Ether [wstETH] deposited for trades across decentralized finance (DeFi) pools. This resulted in a 0.25% growth in the total share of wstETH sent to DeFi protocols. 

Regarding Layer 2 (L2) platforms, data from Dune Analytics showed a 2% and 1.17% increase in the amount of stETH bridged to Arbitrum [ARB] and Polygon, respectively. 

On the other hand, Optimism [OP] recorded a 2.43% decrease in the amount of bridged stETH during the period under review.

Read Lido [LDO] Price Prediction 2023-24

LDO in the past 24 hours

At press time, LDO exchanged hands at $1.58. According to data from CoinMarketCap, the DeFi token saw a 5% drop in value in the past 24 hours. 

On the spot market, accumulation dwindled amongst daily traders. At press time, the token’s Relative Strength Index (RSI) and Money Flow Index (MFI) trended downwards, suggesting that LDO sell-offs outpaced accumulation.