Lido fundamentals shine even as the wider crypto market struggles to regain traction

The crypto marketplace has witnessed a turbulent fewer weeks aft the FTX illness but Lido Finance, a liquid staking protocol, has been a agleam spot amidst the chaos. According to Data from DeFiLlama, Lido protocol has earned $1 cardinal oregon much successful fees regular since October 26. 

Lido fees and gross implicit time. Lido has collected implicit $1M successful fees each time since October 26th pic.twitter.com/GHkzSzYIOo

— DefiLlama.com (@DefiLlama) November 18, 2022

Let’s analyse the on-chain fundamentals to spot wherefore this inclination has continued.

What’s down Lido Finance’s growth?

Lido’s growth started successful May 2021, pre-FTX collapse. The fees reached an all-time precocious connected Nov. 10 arsenic interest gross astir topped $2.6 million. The protocol earns 10% of the full Ethereum (ETH) staking rewards generated from idiosyncratic deposits.

Data besides shows a dependable summation successful deposits to Ethereum’s PoS statement translates to an uptick successful Lido’s interest capture.

Lido full deposits. Source: Dune Analytics

Lido’s interest gross moves successful tandem with Ethereum Proof-of-stake (PoS) net since Lido sends received Ether to the staking protocol. After the FTX collapse, Ethereum enactment has grown acknowledgment to an uptick successful decentralized speech (DEX) activity. Ethereum fees and gross besides reached a 30-day highest connected Nov. 8, posting $9.1 cardinal successful fees and $7.3 cardinal successful revenue.

Ethereum fees and revenue. Source: Token Terminal

New and regular progressive users support increasing

Unique depositors into the Lido protocol person reached 150,000, demonstrating that Lido is continuing to pull caller users. The summation successful unsocial deposits comes aft centralized “earn” programs person shown weaknesses owed to vulnerability to their vulnerability to FTX, Genesis, BlockFi and others.

Lido unsocial deposits. Source: Dune Analytics

Daily progressive users and Lido (LDO) token holders are besides expanding connected Lido. According to information from Token Terminal, regular progressive users deed a 90-day precocious of 837 connected Nov. 17 further bolstering the platform’s affirmative momentum.

Lido tokenholders and regular progressive users. Source: Token Terminal

Related: DeFi platforms spot profits amid FTX illness and CEX exodus

Lido’s marketplace capitalization does not lucifer its on-chain fundamentals

While fees, deposits and gross proceed to summation for Lido, the marketplace headdress of LDO tokens is not keeping pace.

As mentioned above, Lido deed a grounds magnitude of fees connected Nov. 10, astatine the aforesaid clip the marketplace headdress decreased from $1.2 cardinal to $663.7 million.

According to Coingecko, during this aforesaid period, the terms of LDO tokens dropped from $1.80 to a debased of $0.90.

Lido’s circulating marketplace headdress and fees. Source: Token Terminal

Despite the market-wide downturn, Lido is showing beardown fundamentals connected aggregate fronts. The dependable uptick successful DAUs, gross and caller unsocial participants are each cardinal components for assessing maturation and sustainability wrong a DeFi platform.

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