Lido wstETH

In a tweet on March 28, Lido Finance [LDO] reported a 2% decline in its Total Value Locked (TVL) over the previous week. A decline in the TVL could portend a bleak future despite the great demand for Lido&#39;s stETH in the month prior.The declining activity on the network may be one factor contributing to Lido&#39;s reduction in TVL. The number of daily active users on the protocol has decreased by 29.1% recently, according to data from Token Terminal.This decrease in users can be due to Lido&#39;s falling APR. Users have less incentive to contribute liquidity or stake their assets through the system when the APR declines.Nonetheless, Lido&#39;s wstETH performed well in L2 protocols and loans. WstETH was more popular on protocols like MakerDAO and Aave, where demand increased by 25.96% and 10.6%, respectively.For the L2 solutions, Optimism saw a 4.4% increase in wstETH deposits while Polygon [MATIC] had a 3.67% increase. Moreover, LDO did not have a good week either, as its prices fell sharply over the previous few days. The decrease in whale interest, as shown by Santiment&#39;s statistics, may be one factor contributing to the drop in LDO&#39;s price.Moreover, LDO&#39;s network growth declined, suggesting that new addresses were uninterested in purchasing the token at the advertised price.The token&#39;s MVRV ratio turned negative, though, thus it seemed as though LDO might not fall any lower. A negative MVRV ratio suggested that most LDO token owners were losing money as of press time. As a result, at the time of publication, they were significantly more inclined to hold off on liquidating their positions until LDO&#39;s prices rose.Although LDO prices may rise again in the future, the recent price declines may have a significant impact on the procedure. This is due to the fact that the LDO token made up 82.9% of Lido&#39;s treasury. If the costs kept dropping, the protocol might not have enough funds to upgrade its network.

Lido: TVL dips despite stETH demand, what will the protocol do next

ItsBitcoinWorld

Artikel lain yang dipublikasikan pada 30 Mar 2023

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