Key Points:
Data from the DeFi market aggregator, DeFiLlama, shows that Lido Finance is presently in first place with $5.9 billion in TVL, followed by MakerDAO and AAVE with $5.89 billion and $3.7 billion, respectively.
The sharp rise in demand for Ethereum staking solutions has been blamed for Lido’s TVL price increase. The Ethereum Merge, which signaled the network’s switch from Proof-of-Work (PoW) to Proof-of-Stake (PoS), according to a recent Nansen analysis, led to strong demand for such solutions.
To strengthen its position within the business and establish itself as the leading DeFi protocol, Lido Finance took advantage of this chance.
According to the Nansen analysis, Lido presently has a stake in 31% or more of all ETH. When contrasted to the market shares of the biggest cryptocurrency exchanges, such as Coinbase and Kraken, which hold 15% and 8.5% of the market, respectively, this domination is substantial.
According to the protocol’s official website, Lido Finance currently has $5.8 billion of staked Ether. On the other hand, there are around $43.9 million of staked ETH on Polygon, $23.2 million on Solana, $11 million on Polkadot, and $2.2 million on Kusama.
The DeFi market’s TVL significantly decreased during the past year, dropping from over $167 billion in January 2022 to $38.6 billion at the time of writing, a loss of more than 70%.
The rise in hacks and cybercrime in the DeFi industry also contributed to the sector’s general collapse. According to studies, DeFi protocols lost the most money in 2022. The most significant exploit was the Ronin bridge hack, in which hackers stole digital assets worth over $620 million.
Despite the fact that DeFi yields are still generally reduced, the market has remained remarkably resilient in the face of what is now recognized as the worst bear market in cryptocurrency history.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
The SEC is reportedly fast-tracking approval for spot Ethereum ETFs, which would allow ETFs to…
Decentralized social protocol Farcaster raises $150m in a funding round. The funds will help grow…
The SEC is likely to approve listing spot Ethereum ETFs as the SEC asked Nasdaq…
ZkSync token generation will be launched soon, with an airdrop anticipated around June 13.
Majuro, Marshall Islands, May 21st, 2024, ChainwireMultipool, a leading innovator in the blockchain and cryptocurrency…
Grayscale has submitted an updated 19b-4 form for Grayscale Ethereum Mini Trust.
This website uses cookies.