Lido Finance reported that its total locked value (TVL) increased by 10.83% over the past week, reaching $25.18 billion as of Sept. 23. The increase was primarily due to the rise in Ethereum token prices, which increased the value of assets staked through the platform. Despite the overall increase in TVL, a net amount of 26,528 ETH was unstaken during the same period, indicating that some users chose to withdraw their assets.
The 7-day APR for staked Ether (stETH) increased by 27 basis points to 3.17%, reflecting increased activity on the Ethereum network that could lead to higher staking rewards due to increased transaction fees distributed to validators.
Trading volumes for stETH and wrapped stETH (wstETH) also increased significantly, growing 27.49% to $920.29 million. The increase in trading volumes suggests growing liquidity and interest in staked Ether derivatives within the DeFi market.
Bridged wstETH (representation of stETH on other blockchain networks) decreased by 2.04% to a total of 191,498 wstETH across multiple chains. Distribution of wstETH varies by network.
Network wstETH amount fluctuation rate (%)Arbitrum 85,086 wstETH -1.56%Optimism 36,628 wstETH -0.85%Base 27,689 wstETH -5.07%Scroll 20,490 wstETH -0.65%Polygon 11,967 wstETH +5.65%Linea 3,818 wstETH -0.72%BNB Chain 2,802 wstETH -31.46%zkSync 1,844 wstETH -1.54%Cosmos 1,168 wstETH +0.01%
Notably, BNB Chain saw a significant drop in wstETH holdings by 31.46%, which could indicate a change in user preferences or strategic reallocation to other networks, while Polygon recorded an increase of 5.65%, suggesting increased user engagement with layer-2 scaling solutions.
The movement of wstETH across various networks reflects the dynamic strategies of DeFi participants seeking optimal yields and network efficiency. The decline in bridged wstETH suggests a cautious approach by users. The significant un-staking of ETH may also indicate profit taking or redeployment in anticipation of market shifts.
The amount of stETH in lending pools and restaking protocols has remained relatively stable at 2.79M stETH and 1.36M stETH, respectively. This stability indicates continued confidence in these platforms to generate passive income through lending and staking activity. However, liquidity pools have seen a significant decline in stETH holdings of 22.22%, dropping to 74,800 stETH. The decline in liquidity pool participation may impact trading efficiency and slippage rates for stETH pairs on decentralized exchanges.
Understanding these patterns is essential for stakeholders to effectively navigate the DeFi environment, as the interplay between staking rewards, network activity, and asset allocation strategies significantly shapes market forces.
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