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Lido Finance reported that its total value locked (TVL) increased by 10.83% over the past week, reaching $25.18 billion as of Sept. 23. This growth is primarily attributed to a rise in Ethereum’s token price, which boosted the value of assets staked through the platform. Despite the overall increase in TVL, a net total of 26,528 ETH was unstaked during the same period, indicating some users chose to withdraw their assets.
The seven-day APR for staked Ether (stETH) rose by 27 basis points to 3.17%. This uptick reflects heightened activity on the Ethereum network, which can lead to higher staking rewards due to increased transaction fees distributed to validators.
Trading volume for stETH and wrapped stETH (wstETH) also significantly increased, climbing 27.49% to $920.29 million. The higher trading volume suggests growing liquidity and interest in staked Ether derivatives within DeFi markets.
Bridged wstETH—a representation of stETH on other blockchain networks—declined by 2.04%, totaling 191,498 wstETH across multiple chains. The distribution of wstETH varied among different networks:
| Network | wstETH Amount | Change (%) |
|---|---|---|
| Arbitrum | 85,086 wstETH | -1.56% |
| Optimism | 36,628 wstETH | -0.85% |
| Base | 27,689 wstETH | -5.07% |
| Scroll | 20,490 wstETH | -0.65% |
| Polygon | 11,967 wstETH | +5.65% |
| Linea | 3,818 wstETH | -0.72% |
| BNB Chain | 2,802 wstETH | -31.46% |
| zkSync | 1,844 wstETH | -1.54% |
| Cosmos | 1,168 wstETH | +0.01% |
Notably, the BNB Chain experienced a substantial decrease of 31.46% in wstETH holdings, which may indicate a shift in user preference or strategic reallocations to other networks. Conversely, Polygon saw a 5.65% increase, suggesting growing user engagement with its Layer 2 scaling solutions.
The movements of wstETH across various networks reflect the dynamic strategies of DeFi participants seeking optimal yields and network efficiencies. The decline in bridged wstETH suggests a cautious approach by users. The substantial unstaking of ETH might also indicate profit-taking or repositioning in anticipation of market shifts.
The amount of stETH in lending pools and restaking protocols remained relatively stable at 2.79 million and 1.36 million stETH, respectively. This stability indicates sustained confidence in these platforms for generating passive income through lending and staking activities. However, liquidity pools experienced a significant reduction of 22.22% in stETH holdings, decreasing to 74,800 stETH. The drop in liquidity pool participation could affect trading efficiencies and slippage rates for stETH pairs on decentralized exchanges.
Understanding these patterns is crucial for stakeholders navigating the DeFi landscape effectively. The interplay between staking rewards, network activity, and asset allocation strategies significantly shapes market forces.