Lido Finance Surpasses Ethereum in Fee Earnings Amidst Surge in Staked ETH

• Recent data shows that Lido has surpassed Ethereum in terms of fee generation over the last few days.
• Despite an increase in staking activities, the market price of ETH has seen a decline.
• Lido Finance reported an earning of $20.8 million in fees in one week, outpacing Ethereum.

Discover why Lido Finance is making headlines by outpacing Ethereum in fee generation, even as the price of ETH declines.

Lido’s Remarkable Growth

Over the past month, Lido Finance amassed $20.8 million in fees within just a week, exceeding Ethereum’s earnings of $19.8 million during the same period. This achievement positioned Lido Finance as the second-highest fee generator in the cryptocurrency market for that week, trailing only behind Tron, which secured $33.7 million.

Continued Momentum and Staking Dominance

Throughout the month, Lido’s momentum did not wane. The protocol generated $98 million in fees for the month, an 8% rise from the previous month’s figures. This robust performance can be attributed to Lido’s leading position in the staked ETH ecosystem, holding over $33.4 billion in total staked assets and commanding 29% of the staked ETH market share. These significant figures are a testament to Lido’s strength in the industry.

Increasing Deposits and TVL Surge

Lido’s Total Value Locked (TVL) saw a 1.36% increase this week, peaking at $33.48 billion, fueled by 95,616 net new ETH staking deposits within the last seven days. Although the 7-day stETH APR experienced a slight dip of 0.04% to 2.96%, growth was evident in other areas.

Growth in Layer 2 and Lending Pools

Wrapped stETH (wstETH) transfers to Layer 2 networks surged by 7.19%, bringing the total to 141,586 wstETH. Arbitrum led with 65,290 wstETH, followed by Optimism at 27,879 wstETH. Additionally, there were increases in wstETH deposits in lending and liquidity pools, reaching 2.70 million stETH and 83.5k stETH, respectively. Furthermore, wstETH bridged to Cosmos networks also rose by 2.12%, reaching 1,788 wstETH.

Short-Term Challenges for wstETH

Despite these positive indicators, the 7-day trading volume for (w)stETH decreased by 7.25%, totalling $1.23 billion. While the Scroll network saw wstETH volumes increase by 86.26%, other networks including Base, Polygon, Linea, and zkSync Era faced minor setbacks.

Conclusion

Lido’s rapid growth in fee generation and its dominance in the staking market reflect the increasing confidence users have in staking ETH. However, the recent decline in ETH’s market price suggests a complex landscape. As of now, ETH is priced at $3,336.23, experiencing a 3.15% drop in the last 24 hours. Despite these fluctuations, the uptick in staking demonstrates a robust belief in ETH’s long-term value, hinting at promising future developments for both Lido and Ethereum.