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- 1 World’s largest digital asset manager, Grayscale Investments, announced the involvement of Lido in its DeFi funds.
- 2 Grayscale Investments is an American digital asset management company offering investment exposure, market information, and investment-related services.
On July 7, the leader in digital currency investing, Grayscale Investments announced the addition of LDO in its DeFi funds. The announcement is made by the digital asset manager, that LDO is positioned as the number 2 asset in the Grayscale DeFi fund, making up 19.04% of it with Uniswap on top of the list accounting for 45.46% of the fund. The action represents the growing interest in liquid staking services to gain staking rewards along with balancing token accessibility and increased liquidity. The involvement of Lido in the DeFi funds reflects that institutional investors are noticing the liquid staking services.
Why is Lido added to Grayscale’s DeFi Funds?
Lido is a staking solution that offers users the benefits of staking crypto without locking their tokens. Lido Staked ETH (STETH) is the seventh biggest digital asset in the crypto market and emerged as the governance token that attracts investors.
The addition of LDO in the DeFi funds suddenly increased the interest of investors towards staking, mainly those who wish to earn staking rewards without sacrificing the liquidity of ETH tokens. It is also expected that Grayscale Investments will grow its liquid staking space and likely to upsurge related services in a short time. The upsurge in investors’ interest in staking as well as earning staking rewards boosts the chances of the popularity of Lido in the near future.
One of the major reasons for liquid staking gaining popularity is an enhancement in the liquidity of staked digital assets and the involvement of LDO in Grayscale’s DeFi fund representing a vote of confidence.
Nearly two years ago, when the DeFi fund launched, Uniswap, AAVE, and Compound Finance were the three biggest assets. We can say that LDO succeeded in developing a strong position in the index. It is also expected that liquid staking will become the standard way to stake digital assets in the near future, offering flexibility and enhanced liquidity.
Also, Grayscale’s DeFi funds are among the smallest product worth $3.1 Million in assets whereas the flagship product of Grayscale Investment, the Grayscale Bitcoin Trust (GBTC) has around $18 billion in assets.
The Future of Lido
LDO, a multi-platform staking solution, accredits users to put staked tokens to use without locking them. LDO is a governance token controllable over the Ethereum network and also rewards various Decentralized Autonomous Organization (DAO) users and actions.
The current value of LDO is $2.05 with a trading volume of $80,060,861. Lido is facing price fluctuations and is expected to touch $2.68 in the fourth quarter of 2023. Also, it has the potential to reach $11.55 by the end of 2030 promising a great future in the crypto market.
Conclusion
The addition of Lido in the Grayscale Investments DeFi fund boosted the interest of investors towards staking. Liquid staking will offer flexibility and enhanced liquidity to the users and has the potential to emerge as a standard way to stake digital assets. Lido has developed its effective positioning in the DeFi funds index and is showing effective growth in the crypto market.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
