Lido tops fee charts after staking successes, but there may be a catch!

• Lido raked in the most amount of fees, compared to other protocols
• Price of LDO fell significantly along with network growth

Lido [LDO] has been one of the most dominant protocols on the staking front. Despite this, however, the protocol and its token haven’t been as popular as other networks in the crypto space.

Lido outperforms them all

According to latest data, Lido generated the most fees out of all applications in crypto. This surge in fees generated by Lido suggests that activity on the network remains relatively high and users are constantly using this platform for their staking services.

Source: X

However, if we delve into Lido’s performance over the past week, we can see a mixed bag. While the Total Value Locked (TVL) dipped slightly by 1.70% to $35.39 billion, likely due to a minor decline in ETH;s price, there were some positive indicators as well.

For instance, Lido continues to attract stakers, with a net increase of 19,392 ETH staked, representing a 0.26% hike. This translates to a higher overall amount of ETH staked on the platform, with a figure of 9,513,384 ETH.

Source: Dune Analytics

Furthermore, the 7-day moving average (7d MA) for stETH’s Annual Percentage Rate (APR) exhibited a positive trend, climbing by 0.09% to hit 3.27%. This means a potential hike in staking rewards for Lido users.

On the contrary, trading activity for wrapped stETH (wstETH) seemed to have cooled down, with the 7-day trading volume dropping by 19.7% compared to the previous week. By doing so, it settled at a value of $1.03 billion on the charts.

Source: Lido

Looking at the data

Interestingly, the data also revealed movement within the Lido ecosystem. While the total amount of wstETH bridged to Layer 2 (L2) solutions fell by 2.86% to 136,893 wstETH, the amount bridged to Cosmos saw a minimal decline of only 0.16% over the last 7 days.

At press time LDO was trading at $2.18, with its price down by 4.11% in the last 24 hours. The volume at which LDO was trading also declined by 34.57% during the same period. Moreover, the network growth around LDO fell materially, implying that new addresses have been losing interest in LDO.

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

That being said, the overall number of addresses holding LDO has continued to climb over the last few days. This can be interpreted as a sign of accumulation on a smaller scale, despite the fluctuation in the token’s price action.

Source: Santiment