Lido TVL Climbs to an All-Time High
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Lido TVL Climbs to an All-Time High
Lido's total value locked reached a new high after a period of intense growth.
Lido Finance’s (LDO) total value locked (TVL) is now at an all-time high, following a 62% growth in the last month, data from DefiLlama showed.
At press time, Lido’s TVL was $38 billion, making it the largest decentralized finance (DeFi) protocol in terms of TVL. The surge in the protocol’s TVL is attributable to the uptick in Ethereum (ETH) staking in the last month. On-chain data revealed that the total value of staked ETH increased by 6% in the past 30 days.
As of this writing, a total of 32 million ETH out of the total circulating supply of 120 million ETH were staked across various platforms, per CryptoQuant’s data. As reported earlier, a significant amount of these have been staked through Lido.
The boom in user activity on Lido also impacted its fees and protocol revenue. In February, its monthly fees totaled $80 million, and revenue of $8.2 million was generated. According to DefiLlama’s data, these marked the highest monthly fees and revenue ever recorded by the DeFi protocol.
The Demand for LDO Craters
Although the protocol’s governance token LDO witnessed a double-digit rally in its value in the last month, it remains at risk of decline. An assessment of the token’s key momentum indicators on a daily chart showed a steady decrease in demand for LDO.
For example, its Relative Strength Index (RSI) has trended downward since Feb.23. At press time, it remained in a downtrend at 50.60.
LDO’s Money Flow Index (MFI) followed a similar trend and was spotted at 51.88. These values showed that LDO accumulation has declined, and most traders have distributed their holdings.
Lido 1-day price chart | Source: Tradingview
Confirming the bearish sentiment in the market, LDO’s negative directional index (red) rested above its positive index (green). When these trend lines are positioned like this, it suggests that sellers are exerting more influence on the market than buyers, and the price is likely experiencing downward pressure.
Disclaimer
This article is provided for information only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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