The recent surge in the price of Ethereum has led to an increase in the market capitalization of Lido’s staked ether, reaching $10.3 billion. This surge has helped the token’s overall market valuation to climb to the ninth-largest position. According to Coingecko, Lido’s STETH tokens now hold a market capitalization exceeding the $10 billion mark with a circulating supply of around 5.8 million STETH.
Currently, Lido Finance is leading the decentralized finance (DeFi) protocols in the total value locked (TVL) share with a 21.59% share. Lido’s TVL has increased by 8.9% in the last seven days and 17.07% over the last 30 days. The staking reward offered by Lido is 5.9% per annum.
STETH is a synthetic version of Ether, which has led to its exclusion from the list of top ten cryptocurrencies in some market aggregation sites, despite its actual market capitalization. The leading liquid staking protocol is currently Lido, with $13.98 billion staked in liquid staking protocols. STETH accounts for 74.51% of the total value locked in liquid staking protocols.
The rise in the liquidity staking ecosystem and the increasing adoption of Ethereum 2.0 has led to the emergence of several liquid staking protocols. With the growing demand for liquidity staking, tokens like STETH have seen an increase in their market capitalization and overall market share. The surge in the market capitalization of STETH shows the growing interest in decentralized finance and the increasing utilization of staking protocols.
Looking ahead, it is possible that STETH and other liquid staking tokens will rise up the ranks of the top cryptocurrencies, as more investors and users become aware of the benefits of staking protocols. Additionally, the increasing adoption of Ethereum 2.0 is expected to continue to drive the growth of the liquidity staking ecosystem, leading to more opportunities for stakers and token holders. As the DeFi ecosystem continues to grow, liquidity staking and synthetic assets are expected to play a vital role in the future of finance.