Lido retains its spot as the leading DeFi protocol, the reason isn’t surprising

ambcrypto.com:

With a 16.77% market share of the $47.2 billion worth of crypto assets locked on several decentralized finance (DeFi) protocols, Lido Finance (Lido) retains its spot as the leading project with the highest total value locked (TVL).

Read Lido Finance’s [LDO] Price Prediction 2023-2024

After displacing MakerDAO for the first time in January, Lido has held on to its position. According to data from DefiLlama , Lido’s TVL at press time was $7.92 billion and was closely followed by MakerDAO, which had a TVL of $7.09 billion. 

The confirmation of a March date for the Shanghai Upgrade for the Ethereum network might have contributed to a jump in the value of assets locked on Lido.

According to a report published in December by blockchain analytics platform Nansen, staking solutions have been highly sought after since Ethereum’s transition to a proof-of-stake (PoS) consensus mechanism in September 2022.

The report emphasized the influence of the Merge in bringing staked ETH as a yield-generating instrument that is purely native to cryptocurrency and has surpassed other yield-generating services that are collateralized. 

Additionally, the sustained increase in the demand and usage of stETH, a tokenized version of staked Ether native to Lido, further solidified the protocol’s position as the DeFi project with the largest TVL.

As of now, Lido’s TVL has exceeded its value prior to the FTX collapse.

Source: DefiLlama

According to Dune Analytics , Lido’s share of the ETH staking market was 29.36% at press time. So far this year, this has oscillated between 29.25% and 29.37%. 

Realistic or not, here’s LDO’s market cap in BTC’s terms

While Lido remains the most preferred platform for ETH staking, its market share has declined