Of Lido’s new highs, Ethereum’s input, and the impact on LDO

  • In February, Lido’s fees and revenue reached their highest levels.
  • The protocol also recorded significant growths in TVL and staking APR in the last month.

Monthly fees and revenue for the leading liquid staking protocol, Lido Finance [LDO], closed February at their highest levels ever, according to DefiLlama data.

This was due to the significant uptick in the amount of Ethereum [ETH] staked in the last month. According to data from CryptoQuant, the total value of staked ETH rose by almost 10% during that period.

Until press time, 31.5 million ETH were staked, worth around $109 billion. 

Data from DefiLlama showed that transaction fees on Lido totaled $80 million in February. This marked a 10% uptick from the $73 million recorded in transaction fees in January.

The revenue derived from these fees during the 29-day period was $8.02 million, representing a 9% increase from January’s figure, on-chain data revealed.

Source: DefiLlama

Lido excels across the board

Increased staking activity resulted in a spike in Lido’s total value locked (TVL), AMBCrypto found. Per DefiLlama’s data, the liquid staking protocol’s TVL rallied by 57% in the last month.

At press time, Lido’s TVL was $34 billion, maintaining its spot as the largest decentralized finance (DeFi) protocol by TVL.

Apart from its recent rally above the $3400 price mark, the surge in ETH staking on Lido was also due to the rise in staking Annual Percentage Rate (APR).

According to a Dune Analytics dashboard prepared by Lido Finance, the APR offered to ETH stakers on the platform has risen steadily since the 24th of February.

As of this writing, staking APR on the platform on a seven-day moving average was 3.42%, rising by almost 5% in the last eight days. 

Data from Dune Analytics showed that the year has seen a significant decline in withdrawals from Lido. 

Realistic or not, here’s LDO’s market cap in BTC’s terms

Conversely, daily deposits onto the protocol have continued to climb, reaching a year-to-date (YTD) high of 71,000 ETH deposits on the 9th of February. In the last week, net deposits on Lido totaled 48,000 ETH. 

According to Dune Analytics, Lido’s market share of the ETH staking ecosystem was 31.16%. Out of the 986,000 total validators on the Ethereum network, 31% of them staked through Lido.

Next: Does Vitalik Buterin find memecoins ‘over-invested’ or ‘under-loved’?

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