Lido Finance [LDO] The market leader in liquid Ethereum (with a market share of over 80%) is making the headlines. Now, one of the largest “contributors” to Ethereum has seen a strong price increase in the past 24 hours. So what really triggered this rally, and can it sustain the gains?
Lido Finance’s native LDO token is up over 16.2% at the time of writing. Ergo, this coin made it one of the top gainers on CoinMarketCap despite the drop in cryptocurrency prices. So what really helped the token to record such an unprecedented rise?
First, Ethereum. In the eventual transition to the new version of the network, LDO will become one of the largest “contributors” to the Ethereum Proof of Stake (PoS) era. The reason why more people are choosing to join the DAO is that it will have one of the largest voting rights in the market.
In addition, the LDO Features Also from MakerDAO’s new proposal. After that, the latter saw strong momentum and gains. Now both of them have a long history together. At the time of publication, they represent one of the largest protocols by TVL in the DeFi space.
Also, TVL’s stats were really catchy. Just a month ago, TVL rose by more than $1 billion in two weeks. At the time of publication, the cumulative number showed a positive story.
After a 74% drop between May and July, Lido finance TVL has started to recover, albeit slowly. At the time of writing, TVL is only worth $6.9 billion on the platform, up 9% from July.
According to DeFiLlama, LDO is ranked second according to TVL, behind only MakerDAO [MKR].
How did this affect the network? Well, initially the number of unique depositors was about 77.4 thousand. In fact, a significant increase in the last three months as shown in the chart below.
There are a few drawbacks to consider
However, the cumulative number did not paint quite the same picture due to massive corrections in the past. especially the period after May; Cumulative deposits have reached a fixed rate that has not changed at the time of publication.
Moreover, the price could not maintain positive enthusiasm. At press time, the coin received another 2% correction, trading around $1.96.