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Lido Dao provides staking infrastructure to various networks, especially the liquid staking of Ethereum. It allows users to stake Ethereum and get stETH in return. The native token LDO is used as a governance token for the Lido Dao. The Lido ecosystem has shown significant growth in network activity. Lets have a look at its ecosystem.
Steady Dominance Of Lido In Market Share
Lido has a 28.8% share in the Ethereum deposited to the beacon chain as of April 21st. The overall ETH staked through the Lido middleware is around 9,333,652. Meanwhile, the overall staking user APR is around 3.42%. The swap rate of the stETH:ETH as per the Curve Protocol is 0.9995.
Lido TVL has also observed a decline of $6 Billion since its peak from the high of $38 Billion on March 12th, 2024. Since then, token liquidity of the protocol steadily declined to $10 Million.
Lido Protocol has been observing a net cumulative withdrawal compared to the deposits. Also, the overall protocol revenue has been declining for the past few weeks. The median APY for the network is steady between 3.7 and 4%. Lido also controls a significant share in the overall liquid staking of Ethereum. The net Ethereum deposited by Lido is over 9.2Million.
Simple DVT Module: A Milestone In Lido Journey
The Lido Simple DVT Module is here 🌐
— Lido (@LidoFinance) April 16, 2024
72 net-new Node Operators, including solo stakers, powered by @ObolNetwork-based Distributed Validator Technology (DVT), are ready to run validators.
Net-new ETH deposits to Lido on Ethereum will be automatically directed by the Staking… pic.twitter.com/jAsbSl0vZE
Simple DVT module was launched recently for the Lido protocol’s mainnet, marking a significant milestone in enhancing decentralization. It also enables community stakers, including solo stakers, to participate in running validators, diversifying the Lido Node Operator set. It was voted by Lido Dao 6 months ago for driving the innovation in Ethereum staking
The Simple DVT Module is capped at 0.5% of total Lido stake (initially), aiming to onboard 250 net-new Node Operators. Its deployment represents the first step toward decentralization, with plans to wind it down within three years in favor of more scalable modules.
It also enhances validator resilience and promotes decentralization across infrastructure. The module’s mechanisms include node operator selection and a Simple DVT Module Committee for operational decisions.
Economic incentives, like treasury and module fees which encourages participation and support to DVT providers. As of April 16th, 2024, the first 12 clusters of Obol Cohort 1 have joined mainnet, with plans to monitor their performance and potentially increase their validator limits. The scaling of the Simple DVT Module is underway as per the information provided by the Lido Dao website.
Is LDO Token On The Cusp Of A Breakout?
Lido Dao has a market cap of $1.87 Billion and is currently ranked 55th in the cryptoverse. The overall volume of the LDO token has seen a surge of 5% in the intraday session. LDO is currently trading near the value of $2.12 with a gain of 5% in the intraday session. It is currently seeing a weak bullish candle on the daily chart.
LDO is trading below the 50 and 100 day EMAs on the daily chart. If LDO jumps over the EMA, then a strong bullish momentum in the trend will be seen. MACD and RSI of the LDO hints towards an upcoming bullish trend in the token price.
Disclaimer
The views and opinions stated by the author or any other person in this article are for informational purposes only and do not constitute financial, investment, or other advice.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
