Liquid Staking Protocol Lido’s Defi Dominance Swells From 7% to 26% in 12 Months

According to statistics, the liquid staking platform Lido accounted for 7.45% of the total value locked in decentralized finance (DeFi) a year ago today. Since then, Lido’s market dominance has significantly increased over the last 12 months to its current 26.18% share.

Lido’s Market Share in Liquid Staking $ETH Derivatives Stands at 73%

The liquid staking protocol Lido Finance holds a prominent position in the world of DeFi. As of May 25, 2023, there is $46.6 billion locked into defi applications and protocols, with Lido’s total value locked (TVL) representing 26.18% of that amount. At the time of writing, 11:45 a.m. Eastern Time on Thursday, Lido’s TVL stands at approximately $12.2 billion, according to metrics from defillama.com.

Liquid staking $ETH derivatives on May 25, 2023.

According to Lido’s website, the current value locked in the protocol is $12.27 billion, with $12.11 billion representing ethereum ($ETH). The remaining portion of value held in Lido originates from networks such as Polkadot, Solana, Polygon, and Kusama. Lido’s dominance of 26.18% is significantly greater than last year when the TVL in DeFi amounted to $111.11 billion.

Back then, Lido’s TVL amounted to $8.28 billion, accounting for 7.45% of the total value locked in DeFi on that day. A year ago, MakerDAO held the position as the most dominant DeFi protocol in terms of TVL, with 8.87% of the DeFi economy’s value and $9.86 billion locked. Lido’s dominance began to gain momentum at the start of 2023, a time when the TVL in DeFi was merely $38.72 billion.

Archived data indicates that when the TVL in DeFi reached $38.72 billion, Lido’s dominance stood at 15.24%. During that period, Lido’s TVL amounted to only $5.9 billion. According to statistics from defillama.com, Lido commands a market share of 73.26% in liquid staking $ETH derivatives, representing 9,128,624 locked ether. Out of the total 9.12 million ether, current statistics show that Lido holds 6,687,554 $ETH.

During the past 30 days, Lido experienced an 8.91% change, whereas competitors in the liquid staking $ETH derivative space such as Rocket Pool and Frax Ether saw double-digit gains. Rocket Pool recorded an increase of 32.18%, while Frax witnessed a rise of 42.25% over the past month. Coinbase’s liquid staking $ETH derivative stands as the second largest, with 1,128,662 ether locked, but it has experienced a reduction of 1.47% over the same period.