Lido Finance’s L2 protocols are in high spirits, but what about LDO?

the lido finance [LDO] Liquidity pool activity over the last seven days showed that layer two (L2) protocols have been outperforming others on the chain.

According to the liquid participation platform, both arbitration Y Optimism [OP] showed a greater contribution to the Lido pool between October 3 and 10.

Lido, in his 19-tweet thread, also revealed some aspects of the protocols that have been significant within that period.

Remember that it was only recently that these protocols were put in place at Lido, but where are the numbers?

More stETH, thanks to…

Based on data from dune analysisabout $9 million worth of Ethereum staked [stETH] entered the Arbitrum and Optimism group in the last seven days. This flow of liquidity led to rewards in various pools reaching 38.59%.

Source: Dune Analytics

For optimism, the reward came in at 86.94%. In the Kyber Network agriculture pool, the total value locked (TVL) was $400,310.

For Beethoven, a 43.07% reward brought the TVL to $955,100. Following these developments, it seemed that the L2 protocols could be the ones leading the chain in the LDO group.

Source: Dune Analytics

Interestingly, these upgrades seemed to play a vital role as LDO staking deposits on various chains increased. By staking deposits on the Moles [DOT] chain rose 5.53% Polygon [MATIC] recorded the highest amount of deposits with 8.28%.

This increase also helped DOT reach two million tokens staked, double the figures for August.

According to LDO TVL, the performance of the last seven days was not impressive. According to DefiflameLDO’s TVL took a hit of 2.97% in the last seven days.

This led to a loss of $6 billion. At press time, Lido’s TVL was $5.86 billion. The implications of this loss could be that investors may have slowed down the assets locked up in Lido.

Source: DeFi Calls

In other respects, LDO’s 24-hour volume was up 140% to $25.18 million. However, the increase was not enough to drive up the price of LDO.

According to CoinMarketCap, LDO is down 6.52% since Oct. 10. It had also shredded 5.12% against Ethereum [ETH].

However, there was no sign of a respite according to the four-hour chart. A look at the price action showed that the moving average convergence divergence (MACD) and exponential moving average (EMA) favored the bears.

With momentum from both sellers and buyers below the zero point of the histogram, LDO’s recovery potential was hardly guaranteed. However, Chaikin Money Flow (CMF) seemed to agree with the volume pump as it showed a -0.18 revival at a neutral level.

Source: TradingView

Leave a Comment