With a total locked value of $5.9 billion, Lido Finance, a liquid staking pool, surpasses MakerDao as the largest DeFi protocol.
This increase coincides with the Ethereum Network’s rising demand for staking solutions.
Lido Holding The Number One Spot
Making up the most powerful force in the Decentralized Lending protocol, Lido Finance surpasses MakerDao taking up the number one spot with the highest TVL of $5.9 billion.
According to data from DeFiLlama, MakerDao and Aave protocol are in second and third place, respectively, in the Total Value Locked rankings, with Lido Finance holding the number one spot.
The increase in Lido’s TVL is attributed to the increased demand for the Ethereum network staking solution.
According to reports, demand for staking solutions increased on the network following the September merge of the Ethereum Network and the Beacon chain, which switched the network’s consensus mechanism from proof of work to proof of stake.
By taking advantage of this upsurge, LidoFinance was able to grow and become the most dominant key player with the highest TVL in the DeFi protocol.
Also read:Among all the DeFi platforms on the Ethereum Network, reports indicate that Lido Finance is the largest holder of staked Ethereum.
The dominance of Lido over Coinbase and other exchanges in the DeFi market has been demonstrated by this.
The firm presently has approximately $5 million worth of staked ETH, according to Lido’s official website.
With only $43 million staked on the Polygon network and $23 million placed in ETH on Solana, Lido stands out in comparison to other platforms.
Crypto Winter Permeates Into DeFi Sector
The Defi sector was one that was severely impacted by the crypto winter; the crises and crashes from the event last year permeated the DeFi finances, causing a 70% decrease in the Total Value Locked for the DeFi sector.
Between January 1st, 2022, and January 2nd, 2023, the DeFi sector witnessed a loss of more than $130 million in TVL.
Cyber attacks and liquidations also contributed to these disastrous declines, with large amount of funds sucked out of the developing DeFi sectors via hacks and price manipulation.
According to sources, the DeFi sector sustained losses of more than $3 trillion in a matter of months in 2022.
However, the sector continued to exhibit resilience in the face of this crisis, looking forward to the next bull run.
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