LDO among top gainers as Lido TVL reaches 10-month high

Lido, a leading multi-chain cryptocurrency pooling solution, is seeing an explosive rise in the Total Value Locked (TVL), with its value recently rising to a 10-month high of $11.5 billion.

Meanwhile, Lido DAO (LDO), its parent token, is up 10% in the past 24 hours, making it the highest gainer among the top 50 crypto assets.

The last time Lido’s TVL saw this high was before Terra’s collapse in May 2022. In addition to the cascading effect on the broader crypto market, Terra’s implosion has had an additional impact on Lido’s TVL as the staking solution is also located on the Terra network. Lido’s fiasco led TVL to a low of $4.69 billion in June 2022.

The platform’s TVL has struggled to recover since then, and Ethereum’s move to Proof-of-Stake last September helped this recovery journey. Lido’s value began to gradually rise in January, rising from $6.18 billion on January 5th to its current value of $11.5 billion. This represents an 86% increase this year.

Lido has also increased in value by 26.21% in the past month. Dominating 22.40% of the total DeFi scene, Lido’s growth has also boosted the total TVL of the DeFi sector, which is up 3% in the last 24 hours to a value of $51.32 billion at the time of writing.

Market watchers attributed this rapid growth of Lido’s TVL to a surge in accumulated ethereum (ETH), as the edges of the Shanghai upgrade approached. As Lido revealed in a tweet this month, stakes have risen to 15% of the total supply of ETH.

This metric is critical to Lido’s value because more than 30% of the total ETH stack is deposited through Lido, per data from Dune Analytics. Furthermore, on-chain analyst Patrick revealed that liquid storage services now account for $16.23 billion of all DeFi deposits as of this month.

Lido Dow token up 12%

In addition to the huge rise in Lido’s TVL value, the protocol’s native token has posted impressive gains. LDO is seeing a gain of 10.42% over the past 24 hours, making it the biggest gainer among the top 50 assets over the timeframe. The asset is up 11.30% in the past week.

LDO rose from $2.36 yesterday to a high of $2.8 earlier today, posting an 18% increase in less than 24 hours. The asset faced heavy resistance at the $2.8 area, but remained above the $2.6 area. LDO is currently trading for $2.68 at the time of writing.