Total value locked (TVL) of the liquid staking protocol from Lido Finance surpassed $15 billion in July, but later declined slightly amid a fall in Ethereum’s price. This was disclosed by the platform’s representatives in a monthly report.
“Despite the activation of withdrawals from Ethereum staking at the start of this year, the protocol has consistently experienced a large monthly net inflow of deposits. As a result of this continual growth, the platform appears poised to surpass the 8 million ETH threshold next month,” the report says.
According to developers, more than 10,000 new users joined Lido in July, nearly 50% higher than in the previous month, reflecting impressive growth of the protocol and market demand.
During the period, the service sent 40 wrapped stETH (wstETH) as rewards to stablecoin liquidity platforms and to the L2 network on Optimism.
StETH reserves in the protocol’s treasury rose by 4% — from 33 079 to 34 415 tokens. Meanwhile the volume of “stablecoins” DAI declined by 15%, to $7.22 million.
Lido noted that demand for wstETH on Layer 2 networks rose by 12.8%. Deposits of the wrapped asset on Arbitrum and Optimism bridges increased by 16.58% and 10.23%, respectively.
“Although the Curve Finance exploit last week did not affect the stETH-ETH pool, many liquidity providers nevertheless chose to withdraw their stETH assets until the issue is resolved,” the platform’s representatives added.
According to the Dune dashboard, Dune, Lido accounts for about 32% of the Ethereum staking market. In total, 249,000 validators are active on the platform.
Earlier, Glassnode analysts said that following the activation of the Shanghai upgrade on the network of the second-largest cryptocurrency, inflows to liquid staking protocols led by Lido Finance have intensified.