• Lido (LDO) is now the dominant DeFi protocol based on the total value of assets locked (TVL) in its ecosystem.
• Lido’s TVL overtook that of MakerDAO (MKR) in the last 24 hours after rising by 0.57% to $5.90 billion.
• Lido is also the dominant staking service provider — it controls 29.11% of the market.
The Ethereum (ETH) staking protocol Lido (LDO) has seen tremendous growth in the past 24 hours, with its Total Value Locked (TVL) surpassing that of MakerDAO (MKR) to become the largest DeFi protocol. According to DeFillama data, Lido’s TVL stands at $5.90 billion, representing 15.23% of the total DeFi TVL of $38.68 billion.
Lido’s website shows that their TVL is currently standing at $5.95 billion, with $5.86 billion of that coming from Ethereum staked via the platform. In addition, the platform has assets like Polygon (MATIC), Solana (SOL), Kusama (KSM) and Polkadot (DOT) locked with a combined value of $83.7 million.
A tweet from Lido on December 20th highlighted that staking deposits had grown across all chains except Kusama. The platform noted that the negative price performance of the native tokens of these chains had contributed to their TVL performance.
In addition to its dominance in terms of TVL, Lido is also the dominant staking service provider. Dune analytics data shows that Lido controls 29.11% of the market, ahead of other competitors like Coinbase, Kraken, and Binance, which cumulatively control roughly 27% of the staked Ethereum.
This dominance of Ethereum staking by Lido has led several analysts to express concern that it could lead to a single point of failure for the blockchain network. However, the platform has been quick to respond to these concerns, stating that it has implemented numerous measures to ensure that Ethereum remains resilient and secure.
Overall, the growth of the Lido protocol is a testament to the power of DeFi and the potential of staking on Ethereum. With its TVL surpassing MakerDAO and its dominance in the staking market, Lido looks set to remain an integral part of the Ethereum ecosystem for the foreseeable future.