Lido Outpaces Competitors in May – the Reason is Clear

Lido Finance, the leading liquid staking protocol, has recently made remarkable progress within the decentralized finance (DeFi) ecosystem, positioning itself as a success story. According to The Rollup, a renowned DeFi analytics company, Lido witnessed a remarkable 22% surge in revenue over the past month, surpassing all other DeFi protocols in growth.

This notable increase in revenue followed the highly anticipated launch of Lido’s version 2, which allowed users to withdraw their Staked ETH (stETH) to Ethereum (ETH). It’s important to note that the revenue generated by the protocol represents only a fraction of the staking rewards distributed to holders of the native token, LDO.

Currently, Lido dominates the DeFi protocol space, boasting assets valued at an impressive $13.47 billion. DeFiLlama states that this surpasses the total value locked (TVL) of the second-ranked MakerDAO by more than double.

Lido’s TVL has been soaring since the beginning of 2023, primarily fueled by the excitement surrounding the Shapella Upgrade and its subsequent launch. Since the introduction of Lido V2, TVL has experienced a substantial 15% increase. This rise in TVL further underscores the return of stakers to the protocol, especially as a significant portion of liquidity on Lido comprises ETH.

As reported by Token Terminal, the growth in active protocol users has been steady over the past month. This indicates a consistent rise in interest and engagement with the platform.

In terms of Ethereum staking, Lido is undisputedly the leader, significantly expanding its market share from 29% at the beginning of the year to 31% at present, according to data from Dune. In comparison, Coinbase holds a distant second position, capturing just over 10% of the staking market.

Lido has successfully processed nearly 99% of withdrawal requests in under three weeks. This notable feat was made possible by implementing Lido’s protocol buffer, resulting in significant time savings and minimizing the need to exit any of the validators on the network.

The enthusiasm surrounding Lido has also positively impacted its native token, LDO, propelling it to become one of the top-performing assets in the crypto market over the past week. CoinMarketCap reveals that LDO has experienced a substantial 11.75% spike in the last 24 hours, trading at $2.3 at the time of writing.

Interestingly, despite LDO’s impressive performance, sentiment analysis conducted by Santiment indicates a prevailing negative sentiment towards the coin. Nonetheless, Lido Finance continues to thrive and solidify its position as a force to be reckoned with in the DeFi landscape.