The protocol that bundled the most transaction validation power within ETH 2.0, LIDO (LDO), has seen the total value locked (TVL) in its protocol plummet in the last 7 days.
More precisely, LIDO saw a reduction of more than 58% in its TVL, which recorded an all-time high of $20.4 billion on April 6, but dropped to around $8.44 billion.
LIDO loses 58% of its TVL
With this drop, LIDO is no longer the largest validation pool for ETH 2.0, since it was assumed by Kraken.
Lido is a staking solution targeting, among others, ETH 2.0. Investors can allocate any amount in exchange for daily rewards on the platform.
This also motivated other protocols to allocate resources in LIDO such as Anchor Protocol, Curve, MakerDao, 1inch, StakeEther, Ledger and SushiSwap Onsen.
“LDO’s TVL is dropping dramatically due to the general crisis of the cryptocurrency market that has been going on for several months. Its TVL on ETH was at $10.32 billion on April 6. After dampening investor interest, its TVL declined by 17% or the equivalent of $8.47 billion on May 22,” said analyst Jet Encila.
Also according to the analyst, after Lido, Binance is in third place, which has grown a lot in the last 30 days, when it was in fifth position.
On the other hand, despite Lido’s drop in terms of TVL, it is still superior in TVL compared to Convex Finance, JustLend, Aave, SushiSwap, Uniswap, Instadapp, PancakeSwap, Compound, and Just Lend.
Furthermore, as pointed out earlier, Lido is currently the second largest staking ‘pool’ of ETH 2.0. Assets staked on Lido are divided into 76,000 cryptocurrency wallets and are worth $10 billion based on prevailing prices.
Lido also promotes staking on the Polygon, Kusama and Solana blockchains. Lido is also governed by a Decentralized Autonomous Organization (DAO) that collectively makes decisions about the blockchain.