• Lido Finance saw a surge in protocol revenue following the launch of its much-awaited version 2.
• The Rollup reported that Lido’s revenue increased by 22% over the previous 30 days, making it one of the success stories of the decentralized finance (DeFi) ecosystem.
• Lido was the leading DeFi protocol with assets valued at $13.47 billion and had a staking market share of 31%.
Lido Finance Sees Surge in Protocol Revenue
Lido Finance [LDO], the largest liquid staking protocol, made giant strides of late, emerging as one of the success stories of the decentralized finance (DeFi) ecosystem. The Rollup, a DeFi analytics company, reported that Lido’s revenue increased by 22% over the previous 30 days, making it one of the most successful protocols in terms of growth rate. At press time, Lido was processing nearly 99% of its withdrawal requests and had assets valued at $13.47 billion.
Launch Of Version 2 Paves Way For Increased Liquidity
The surge in revenue came following the launch of its much-awaited version 2, which enabled users to withdraw their Staked ETH [stETH] to Ethereum [ETH]. As most liquidity on Lido consisted of ETH, this increase in TVL underlined that stakers came back to lock more tokens into their accounts. This was further demonstrated by an increase in active protocol users over last month as indicated by Token Terminal data provider.
Staking Market Share Increases Dramatically
Lido’s staking market share increased significantly from 29% at start of year to 31% at press time according to Dune data indicating that more people were investing into LDO tokens for staking rewards than before. While some these rewards were distributed to holders native token LDO themselves, majority went towards increasing overall revenues for platform itself contributing to its impressive growth within DeFi market overall .
Shapella Upgrade Fuels Growth Further
The hype and subsequent launch Shapella Upgrade also played important role fuelling growth for LDO’s TVL further since beginning 2023 with 15 % increase total value locked (TVL). This indicates strong interest from users wanting reap benefits associated with using platform and taking advantage new features enabled after upgrade implementation .
In conclusion ,it is clear that due combination factors such introduction V2 upgrade ,increased liquidity on platform ,and higher user engagement levels due successful marketing campaigns ,LIDO has been able quickly outpace competitors within space becoming leading DeFi asset today .