Lido fundamentals shine at the same time as the broader crypto market struggles to regain traction


The crypto market has witnessed a turbulent few weeks after the FTX collapse however Lido Finance, a liquid staking protocol, has been a vibrant spot amidst the chaos. Based on Knowledge from DeFiLlama, Lido protocol has earned $1 million or extra in charges each day since October 26. 

Let’s analyze the on-chain fundamentals to see why this pattern has continued.

What’s behind Lido Finance’s development?

Lido’s development began in Could 2021, pre-FTX collapse. The charges reached an all-time excessive on Nov. 10 as payment income almost topped $2.6 million. The protocol earns 10% of the full Ethereum (ETH) staking rewards generated from person deposits.

Knowledge additionally reveals a gradual enhance in deposits to Ethereum’s PoS consensus interprets to an uptick in Lido’s payment seize.

Lido complete deposits. Supply: Dune Analytics

Lido’s payment income strikes in tandem with Ethereum Proof-of-stake (PoS) earnings since Lido sends obtained Ether to the staking protocol. After the FTX collapse, Ethereum exercise has grown because of an uptick in decentralized alternate (DEX) exercise. Ethereum charges and income additionally reached a 30-day peak on Nov. 8, posting $9.1 million in charges and $7.3 million in income.

Ethereum charges and income. Supply: Token Terminal

New and each day lively customers preserve growing

Distinctive depositors into the Lido protocol have reached 150,000, demonstrating that Lido is continuous to draw new customers. The rise in distinctive deposits comes after centralized “earn” applications have proven weaknesses as a result of publicity to their publicity to FTX, Genesis, BlockFi and others.

Lido distinctive deposits. Supply: Dune Analytics

Each day lively customers and Lido (LDO) token holders are additionally growing on Lido. Based on information from Token Terminal, each day lively customers hit a 90-day excessive of 837 on Nov. 17 additional bolstering the platform’s optimistic momentum.

Lido tokenholders and each day lively customers. Supply: Token Terminal

Associated: DeFi platforms see earnings amid FTX collapse and CEX exodus

Lido’s market capitalization doesn’t match its on-chain fundamentals

Whereas charges, deposits and income proceed to extend for Lido, the market cap of LDO tokens shouldn’t be maintaining tempo.

As talked about above, Lido hit a report quantity of charges on Nov. 10, on the identical time the market cap decreased from $1.2 billion to $663.7 million.

Based on Coingecko, throughout this identical interval, the worth of LDO tokens dropped from $1.80 to a low of $0.90.

Lido’s circulating market cap and charges. Supply: Token Terminal

Regardless of the market-wide downturn, Lido is exhibiting robust fundamentals on a number of fronts. The regular uptick in DAUs, income and new distinctive individuals are all key elements for assessing development and sustainability inside a DeFi platform.