{"id":36739,"date":"2023-01-22T09:25:55","date_gmt":"2023-01-22T09:25:55","guid":{"rendered":"https:\/\/lydian.io\/?p=36739"},"modified":"2023-01-22T09:25:55","modified_gmt":"2023-01-22T09:25:55","slug":"lidos-fundamentals-are-shining-even-as-the-broader-crypto-market-struggles-to-regain-its-footing","status":"publish","type":"post","link":"https:\/\/lydian.io\/lidos-fundamentals-are-shining-even-as-the-broader-crypto-market-struggles-to-regain-its-footing\/","title":{"rendered":"Lido's fundamentals are shining even as the broader crypto market struggles to regain its footing","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
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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. <\/p>\n
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<\/a><\/p>\n \u2014 DefiLlama.com (@DefiLlama) November 18, 2022<\/a><\/p>\n Let's analyze the on-chain fundamentals to see why this pattern has continued. <\/p>\n 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. <\/p>\n 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.<\/p>\n Lido complete deposits. Supply: Dune Analytics<\/p>\n 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. <\/p>\n Ethereum Charges and Earnings. Supply: Token Terminal<\/p>\n 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 \u201cearn\u201d packages confirmed weak spot resulting from their publicity to FTX, Genesis, BlockFi, and others. <\/p>\n Lido distinctive deposits. Supply: Dune Analytics<\/p>\n 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. <\/p>\n Lido token holders and day by day lively customers. Supply: Token Terminal<\/p>\n Associated: DeFi platforms see beneficial properties amid FTX collapse and CEX exodus<\/strong><\/p>\n Whereas charges, deposits, and income for Lido proceed to rise, the market cap of LDO tokens isn't holding tempo. <\/p>\n As talked about above, on November tenth, Lido hit report charges whereas its market cap dropped from $1.2 billion to $663.7 million. <\/p>\nWhat's behind the expansion of Lido Finance?<\/h2>\n
New and day by day lively customers are continuously growing<\/h2>\n
Lido's market cap doesn't match on-chain fundamentals <\/h2>\n