At Lido — one of the most popular platforms for liquid stakes — 10,000 Unique Ether (ETH) depositors have signed up for the protocol, helping the Total Value Locked (TVL) in tokens hit a record $15 billion in July exceeded, a level not seen since May 2022.
According to a monthly report by Lido, the number of unique ether deposits surpassed 166,000, up 6.66% over the past month. Lido’s TVL surpassed $15 billion on July 14, although at press time it’s at $14.81 billion due to the recent drop in Ether price.
The rise in both metrics comes as the number of ETH (stETH) staked in decentralized finance (DeFi) liquidity pools fell by more than 53% to around 161,000.
DeFi traders tend to focus on liquidity as it measures how easily crypto investors can access stETH.
The drop in liquidity in DeFi pools was “mainly due to uncertainty surrounding the Curve exploitation/situation at many LPs.” [liquidity providers] I will withdraw until there is more clarity,” Kasper Rasmussen, Lido’s head of marketing, told CoinDesk in a Telegram message.
Curve Finance, a decentralized stablecoin exchange, has lost more than $73 million in a recent hack, resulting in spillover effects to other entities in the crypto ecosystem, including Lido. Curve has since recovered about 73% of the stolen funds.
Despite the drop in stETH in DeFi liquidity pools, demand for stETH for lending protocols and layer 2 rollups remains strong. Market participants not only want to back their loans with LST collateral, but also bridge their LST with layer 2 rollups, as evidenced by Aave holding over 736,000 stETH according to Nansen, as well as “Arbitrum and Optimism bridges showing a surge of 16.58%” or 10.23% of wstETH deposits,” the report reads.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.