Connect with us
Active Currencies 14728
Market Cap $2,609,631,006,658.71
Bitcoin Share 51.37%
24h Market Cap Change $1.60

Lido Finance L2 protocols are in high spirits, but what about LDO

2min Read

Share this article

The Lido Finance [LDO] liquidity pool activity over the last seven days showed that Layer-two (L2) protocols have been outperforming others on the chain.

According to the liquid-staking platform, both Arbirtrum and Optimism [OP] showed a higher contribution towards the Lido pool between 3 and 10 October.

Lido, in its 19 tweets long thread also revealed some aspects of the protocols which have been significant within the said period.

Recall that it was only recently that these protocols went live on Lido but where do the numbers stand?

More stETH, thanks to…

Based on data from Dune Analytics, about $9 million worth of staked Ethereum [stETH] went into the Arbitrum and Optimism pool in the last seven days. This liquidity flow led to rewards on several pools hitting as high as 38.59%.

Source: Dune Analytics

For Optimism, the reward went as high as 86.94%. In the Kyber Network farming pool, the Total Value Locked (TVL) was $400,310.

For Beethoven, a 43.07% reward led the TVL to $955,100. Following these developments, it seemed that the L2 protocols may be the ones to lead the chain in the LDO pool.

Source: Dune Analytics

Interestingly, these updates seemed to play vital roles as the LDO staking deposits increased on several chains. While staking deposits on the Polkadot [DOT] chain went up 5.53% Polygon [MATIC] recorded the most deposits with 8.28%.

This increase also helped DOT to reach two million staked tokens—double the August numbers.

As per the LDO TVL, the performance over the last seven days was not impressive. According to DefiLlama, LDO’s TVL took a 2.97% hit in the last seven days.

This led to a loss of $6 billion. At press time, Lido’s TVL was $5.86 billion. The implications of this loss could be that investors may have slowed down on the assets locked in Lido.

Source: DeFi Llama

In other aspects, LDO’s 24-hour volume increased 140% to $25.18 million, However, the surge was not enough to take LDO’s price up.

According to CoinMarketCap, LDO was down by 6.52% from 10 October. It had also shredded 5.12% against Ethereum [ETH]

However, there was no sign of a respite according to the four-hour chart. A look at the price action showed that the Moving Average Convergence Divergence (MACD) and Exponential Moving Average (EMA) favored the bears.

With both sellers’ and buyers’ momentum below the zero histogram point, LDO’s recovery potential was almost not guaranteed. However, the Chaikin Money Flow (CMF) seemed to agree with the volume pump as it showed a revival from -0.18 to a neutral level.

Source: TradingView

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.