Lido Finance has reached a new record at $41 billion in total value locked (TVL). This significant increase has occurred amid rising Ethereum prices and the LDO token.
Lido Finance Update
A recent update from Milk Road states that Lido Finance has achieved a new all-time high in total value locked. This figure has risen thanks to the increase in Ethereum, positively impacting the price of the LDO token, which has risen by 64% over the past month.
TVL Growth Dynamics
The TVL chart from DeFiLlama shows Lido's growth since 2021. Initially modest, it skyrocketed during the 2021-2022 bull market, peaking at around $20 billion. After a sharp drop, Lido has seen renewed growth since early 2023, with significant staking activity from users and large investors, pushing TVL to $41 billion.
Significance for Ethereum and LDO
Lido is the largest liquid staking provider for Ethereum. It allows users to stake ETH and receive stETH in return, which can be used in DeFi while still earning staking rewards. With interest in LDO increasing, as seen in the last 30 days, Lido may attract more deposits and further increase its TVL.
This record TVL underscores the growth of liquid staking and its importance in the cryptocurrency market, indicating potential future successes for Lido and LDO.
