LDO TVL rises as support moves upward: Can its expansion continue?

• Lido Finance has seen close to an 18% increase in its TVL within the last month.
• LDO has also seen over 240% increase in value since the start of the year.

The Total Value Locked (TVL) for Lido [LDO] increased significantly during the past month, according to statistics from DefiLlama. Moreover, LDO experienced tremendous price growth since the start of 2023. What might have fueled the protocol’s expansion, and should LDO investors anticipate a more favorable price movement in the future?

Read Lido’s [LDO] Price Prediction 2023-24

Lido maintains top DeFi protocol spot

Based on the TVL statistics provided by DefiLlama, Lido Finance has the highest TVL of any Decentralized Finance (DeFi) protocol. The data indicated that its TVL was up by around 18% in the last month. Investigation of the TVL further revealed that, while it had decreased during the previous year, there were indications of an increase.

At the time of this writing, the TVL count was 9.39 billion, while Ethereum [ETH] made up more than 90% of the total value locked on the network.

Source: DefiLlama

LDO on a daily timeframe

According to data from Dune Analytics, Lido presently had the highest proportion of ETH staked. Lido had 31.1% of the ETH staked as of the time of writing. This proportion compares to the second-largest staking platform, which had 11.9%, which could be seen on the chart.

Source: Dune Analytics

Moreover, LDO was trading at about $3.1, down more than 4%, according to a check at a daily timeframe chart. Yet, the token had increased by almost 240% since the start of the new year, notwithstanding the loss that had been reported as of this writing. It was also apparent that its support lines had risen with the value growth. As of the time of writing, the support ranged from $2.9 – $2.6.

Source: Trading View

How much are 1,10,100 LDOs worth today?

Moreover, the Relative Strength Index indicated that the token was in a bull trend. At press time, it was above the 50 level, indicating a bullish trend. This has been the dominant trend for most of the new year. 

If the Shanghai upgrade goes smoothly, Lido Finance and its native cryptocurrency could experience even more rapid expansion. More bets could return to the site if the improvement makes withdrawals possible. In addition, the recent increase in ETH price could encourage more holders to participate in staking.