Defi Protocol Lido reaches $ 5.9 billion in TVL and DETHRONT Makerdao

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Von Krypto News Österreich

The leading decentralized credit protocol Makerdao has lost its dominance on the Defi market, since the Liquid Staking Protocol Lido Finance claimed the top position with the highest blocked total value (TVL).

according to Data from the Defi-Marktaggregator Defillama Lido Finance currently has $ 5.9 billion on TVL, with Makerdao and AAVE with $ 5.89 billion in second and third place.

Ethereum Merge drives the demand for staking solutions

The increase in Lido TVL was attributed to the massive increase in demand for Ethereum-Staking solutions. According to A most recent Nansen report The Ethereum Merge, which marked the transition from the network from ProOF-of-work (Pow) to Proof-of-Stake (POS), led to a high demand for such solutions.

Lido Finance has used this opportunity to consolidate its position within the industry and has now developed into a leading Defi protocol.

According to the Nansen report, Lido currently holds the highest amount of stubborn ETH, about 31 %. This is a significant dominance compared to the market share of the large crypto exchanges, including coin base and octopuses that hold 15 % or 8.5 %

According to the Official website of the protocol , Lido Finance currently has $ 5.8 billion in the ether used. On the other hand, there are around $ 43.9 million of stubborn ETH on polygon, 23.2 million US dollars on Solana, $ 11 million on polo cadot and $ 2.2 million on Kusama.

Defi TVL lists serious crash

The defi market recorded a severe decline in its TVL last year and lost more than 70 % of its value, with a decrease of over $ 167 billion in January 2022 to $ 38.6 billion at the time of writing this article.

The increased rate of hacks and cyber criminals in the defi room also contributed to the general decline in the sector. Accordingly, The Defi protocols suffered the most losses in 2022, whereby the greatest exploit was the Ronin-Bridge-Hack, in which the attacker stole digital assets worth over $ 620 million.

While the defi returns are pressed on a broad front, the market has shown remarkable resistance in view of what is known today as the heaviest bear market for crypto.

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