Lido Finance Hits One Million Validator Milestone, Fuelling Significant Growth in DeFi Ecosystem
Summary:
Lido Finance, the leading decentralized finance protocol on Ethereum, has reached a milestone of one million validators. Liquid staking platforms such as Lido have democratized access to staking, especially for retail users with limited capital. Lido accounts for 28.5% of staked Ether. This achievement comes as the total value locked (TVL) in DeFi protocols experiences significant growth, attributed largely to liquid staking protocols like Lido. Lido alone accounts for over $29.9 billion of the total $47.7 billion TVL in liquid staking platforms.
As the leading decentralized finance protocol on Ethereum, Lido Finance has achieved the one million validator milestone. This major development was announced in a post on April 29. Liquid staking platforms like Lido Finance have increased the accessibility of staking to retail users, who might otherwise require 32 Ether (ETH) to run their individual validator nodes on Ethereum. A substantial proportion—28.5%—of staked Ether is accounted for by Lido Finance, while about 13.6% is staked via the Coinbase exchange, as per data from Dune. Currently, in excess of 27% of the total Ether supply is staked.
Liquid staking protocols, such as Lido, have experienced a quick expansion due to the liquidity advantages they provide to the users. Users staking their Ether with Lido get the protocol’s Lido Staked ETH (stETH) in return, which can be utilized in other DeFi protocols. In contrast, during the staking duration, regularly staked Ether tokens would stay locked and unutilizable.
The total value locked in DeFi schemes jumped from a minimum of $36 billion in the fourth quarter of 2023 to a maximum of $97 billion in Q1 2024. Presently, the total DeFi TVL stands at $92.32 billion, as indicated by DefiLlama data.
A major drive behind the 65.6% quarter-on-quarter increase in DeFi TVL was liquid staking protocols like Lido, as stated by Messari, an on-chain intelligence provider: “The main reason behind this surge was asset price appreciation and liquid restaking, with Ethereum's TVL growing nearly 71%.”
Liquid staking platforms have accumulated more than $47.7 billion in total TVL, with Lido responsible for more than $29.9 billion. Rocket Pool comes second, with $3.86 billion in TVL, as reported by DefiLlama.
More information on this unfolding narrative will be provided as it becomes accessible.
Published At
4/29/2024 11:59:20 AM
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