Lido Finance rides the wave of Ethereum’s upgrade, here’s how

Lido Finance rides the wave of Ethereum’s upgrade, here’s how

March 20, 2023

By Abiodun Oladokun

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Lido’s TVL has touched $10 billion ahead of the Shanghai Capella Upgrade on the Ethereum mainnet.

LDO sees a drop in buying pressure.

In anticipation of the Shanghai Capella Upgrade on Ethereum mainnet in April 2023, liquid staking platform Lido Finance [LDO] has witnessed a significant increase in its total value locked (TVL) as Eher [ETH] stakers look forward to the unlocking of previously locked ETH tokens.

According to data from DefiLlama, in the last month, Lido’s TVL increased by 18%. Moreso, this went up by almost 25% in the last seven days.

At press time, the protocol’s TVL was $10.57 billion, representing a 21.66% share of the entire decentralized finance [DeFi] ecosystem.

ETH stakers have continued preference for Lido

As a result of the contagion brought about by FTX’s unexpected collapse in November 2022, Lido’s share of the ETH staking market dropped below 30% for the first time since April 2022.

Even though Lido displaced MakerDAO [MKR] as the DeFi protocol with the highest TVL in January, Lido’s share of the ETH staking market lingered at 29% in the first two months of the year.

However, things took a different turn in March as Lido reclaimed its 30% market share and surpassed it. This has been due to the execution of the Shanghai Capella Upgrade on Ethereum’s Goerli testnet and the confirmation of a 12 April date for the mainnet upgrade.