Several key points were highlighted in a recent report by Lido Finance regarding the performance of its total value locked (TVL) and other metrics over the past week. The TVL of Lido Finance increased by 10.83% to reach $25.18 billion by Sept. 23, driven primarily by the rise in Ethereum’s token price, which boosted the value of assets staked through the platform. Despite the overall increase in TVL, a net total of 26,528 ETH was unstaked during the same period, indicating some users chose to withdraw their assets.
The seven-day APR for staked Ether (stETH) also rose by 27 basis points to 3.17%, reflecting heightened activity on the Ethereum network, which can lead to higher staking rewards due to increased transaction fees distributed to validators. Additionally, trading volume for stETH and wrapped stETH (wstETH) significantly increased by 27.49% to $920.29 million, suggesting growing liquidity and interest in staked Ether derivatives within DeFi markets.
Bridged wstETH, which represents stETH on other blockchain networks, saw a decline of 2.04%, totaling 191,498 wstETH across multiple chains. The distribution of wstETH varied among different networks, with some experiencing decreases while others saw increases. Notably, the BNB Chain experienced a substantial decrease of 31.46% in wstETH holdings, possibly indicating a shift in user preference or strategic reallocations to other networks.
The movements of wstETH across various networks reflect the dynamic strategies of DeFi participants seeking optimal yields and network efficiencies. The decline in bridged wstETH may suggest a cautious approach by users, while the substantial unstaking of ETH could indicate profit-taking or repositioning in anticipation of market shifts. Meanwhile, stETH holdings in lending pools and restaking protocols remained relatively stable, indicating sustained confidence in these platforms for generating passive income through lending and staking activities.
However, liquidity pools experienced a significant reduction of 22.22% in stETH holdings, decreasing to 74,800 stETH. This drop in liquidity pool participation could potentially affect trading efficiencies and slippage rates for stETH pairs on decentralized exchanges. Understanding these patterns is crucial for stakeholders navigating the DeFi landscape effectively, as the interplay between staking rewards, network activity, and asset allocation strategies significantly shapes market forces.
