Lido TVL pares recent gains as ETH, MATIC, SOL price rally wanes
|- Lido's Total Value Locked surged to $15.37 billion in the week to October 2 before undergoing a slight dip.
- Ethereum Futures ETF launch fell short of expectations, hitting prices
- stETH APR experienced a slight decline, according to seven-day moving average figures.
Lido Finance Total Value Locked (TVL), the value of all crypto assets held in the protocol, reached $15.37 billion in the week to October 2, the highest level since August. The 10.24% weekly surge was largely fueled by Ethereum (ETH) price gains, although the lukewarm launch of Ethereum Futures ETFs has pulled down Lido's TVL.
Lido's 10% TVL surge tapers after ETF launch
Lido Finance, an Ethereum staking player, witnessed a surge in its TVL to $15.37 billion between September 25 and October 2, or a 10.24% increase, according to data published Monday by the protocol in its official X account. Lido notes that the major factor that led to this surge was a 9.52% rise in Ethereum (ETH). During the period, Lido ranked second in net new deposits to the Ethereum Beacon Chain, attracting a substantial 40,768 ETH in just seven days.
Additionally, altcoins like MATIC and SOL also contributed to the gains with an 11.04% and 23.22% price rise, respectively.
Lido market markers
However, Lido's TVL growth tapered off on Tuesday below the $15 billion mark. This could be largely attributed to the market's tepid response to Ethereum's Exchange-Traded Funds (ETFs).
Drivers of Lido TVL
Staked Ethereum APR declines
Lido underlined that the staked Ethereum (stETH) APR, the annual percentage rate that stakers can expect to earn, experienced a slight decline in the last week. The seven-day moving average settled at 3.56%. However, the total amount of wrapped stETH deposited into DeFi pools increased by 0.92%, concluding the week at 3.09 million stETH. The share of wrapped stETH in DeFi also increased marginally, from 35.16% to 35.25%.
Meanwhile, based on CoinShares figures, Ethereum witnessed its seventh consecutive week of outflows, amounting to $1.5 million. If the altcoin market remains lukewarm, Lido TVL could further take a hit in the coming week.
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