The crypto market has seen a tumultuous few weeks following the FTX collapse, however Lido Finance, a liquid staking protocol, has been a vibrant spot amidst the chaos. Based on information from DeFiLlama, the Lido protocol has earned $1 million or extra in charges day by day since Oct. 26.
Lido charges and income over time. Lido has raked in over $1 million in charges day by day since Oct. 26 pic.twitter.com/GHkzSzYIOo
— DefiLlama.com (@DefiLlama) November 18, 2022
Let's analyze the on-chain fundamentals to see why this pattern has continued.
What's behind the expansion of Lido Finance?
Lido's progress began in Might 2021, earlier than the FTX collapse. Charges hit an all-time excessive on November 10 when payment revenue topped almost $2.6 million. The protocol earns 10% of complete Ethereum (ETH) staking rewards generated from person deposits.
The information additionally exhibits {that a} regular enhance in deposits into Ethereum's PoS consensus is resulting in a rise in Lido's payment assortment.
Lido complete deposits. Supply: Dune Analytics
Lido's payment revenue strikes in tandem with Ethereum's Proof-of-Stake (PoS) revenue as Lido sends obtained Ether to the staking protocol. After the FTX collapse, Ethereum exercise has grown because of a spike in decentralized trade (DEX) exercise. Ethereum charges and earnings additionally hit a 30-day excessive on Nov. 8, noting $9.1 million in charges and $7.3 million in earnings.
Ethereum Charges and Earnings. Supply: Token Terminal
New and day by day lively customers are continuously growing
Distinctive depositors into the Lido log have reached 150,000, displaying that Lido continues to draw new customers. The surge in one-time deposits comes after centralized “earn” packages confirmed weak spot resulting from their publicity to FTX, Genesis, BlockFi, and others.
Lido distinctive deposits. Supply: Dune Analytics
Each day lively customers and Lido (LDO) token holders are additionally growing on Lido. Based on information from Token Terminal, day by day lively customers hit a 90-day excessive of 837 on Nov. 17, additional including to the constructive momentum of the platform.
Lido token holders and day by day lively customers. Supply: Token Terminal
Associated: DeFi platforms see beneficial properties amid FTX collapse and CEX exodus
Lido's market cap doesn't match on-chain fundamentals
Whereas charges, deposits, and income for Lido proceed to rise, the market cap of LDO tokens isn't holding tempo.
As talked about above, on November tenth, Lido hit report charges whereas its market cap dropped from $1.2 billion to $663.7 million.
Corresponding coingeckothroughout the identical interval, the value of LDO tokens fell from $1.80 to a low of $0.90.
Lido's circulating market capitalization and costs. Supply: Token Terminal
Regardless of the market-wide downturn, Lido exhibits robust fundamentals on a number of fronts. The regular enhance in DAUs, income, and new distinctive individuals are key parts for assessing progress and sustainability inside a DeFi platform.
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