Lido Finance L2 protocols are in a good mood, but what about LDO

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The Financing of the Lido [LDO] liquidity pool activity over the past seven days showed that layer two (L2) protocols outperformed others on the chain.

Depending on the cashing platform, both Arbitration and Optimism [OP] showed a higher contribution to the Lido pool between October 3 and 10.

Lido, in his 19-tweet long thread, also revealed some aspects of the protocols that were important during said period.

Remember that it was only recently that these protocols were put in place on Lido, but where are the figures?

More stETH, thanks to…

Based on data from Dune analysisapproximately $9 million of Ethereum staked [stETH] entered the Arbitrum and Optimism pool in the last seven days. This liquidity flow led to rewards across multiple pools reaching 38.59%.

Source: Dune Analysis

For Optimism, the reward reached 86.94%. In the Kyber Network farm pool, the Total Value Locked (TVL) was $400,310.

For Beethoven, a reward of 43.07% drove the TVL to $955,100. As a result of these developments, it appeared that L2 protocols could be the ones that would lead the chain into the LDO pool.

Source: Dune Analysis

Interestingly, these updates seemed to play a pivotal role as LDO staking repos increased across multiple chains. While staking deposits on the Spotted [DOT] the channel grew by 5.53% Polygon [MATIC] recorded the most deposits with 8.28%.

The increase also helped DOT reach two million staked tokens, double August’s numbers.

According to LDO TVL, the performance over the past seven days was not impressive. According DéfiLlamaLDO’s TVL has suffered a decline of 2.97% over the past seven days.

This resulted in a loss of $6 billion. At press time, Lido’s TVL was $5.86 billion. The implications of this loss could be that investors may have slowed down on assets stuck at Lido.

Source: DeFi Lama

In other respects, LDO’s 24-hour volume increased 140% to $25.18 million. However, the rise was not enough to push LDO’s price up.

According CoinMarketCap, LDO was down 6.52% from Oct. 10. It had also shredded 5.12% against Ethereum [ETH].

However, there was no sign of respite according to the four-hour chart. A look at the price action showed that the Moving Average Convergence Divergence (MACD) and Exponential Moving Average (EMA) favored the bears.

With the momentum of sellers and buyers below the zero point of the histogram, LDO’s recovery potential was almost not guaranteed. However, the Chaikin Money Flow (CMF) seemed to agree with the volume pump as it showed a recovery from -0.18 to a neutral level.

Source: Trading View


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