• Lido, a decentralized finance protocol, witnessed an increase in staked deposits on its platform.
• Layer 2 solutions such as Wrapped stETH [wstETH] increased by 2.01% over the last week on Arbitrum and by 3.03% on Optimism [OP].
• Despite the increasing TVL, the number of unique users on the Lido protocol fell by 7.31% in the past month.
The Lido protocol, a decentralized finance platform, has experienced a surge in the number of staked deposits on its platform in the last week. According to a tweet by Lido on January 24th, the number of staked deposits on the Lido network increased, except for Solana [SOL]. This suggests that more users are choosing to stake their holdings through the Lido platform, indicating that the protocol still has potential for growth.
Along with the increase in staked deposits, Layer 2 solutions such as Wrapped stETH [wstETH] have also seen an increase in usage. Over the last week, wstETH increased by 2.01% on Arbitrum and 3.03% on Optimism [OP], indicating that more users are turning to Layer 2 solutions to stake their assets and Lido is benefiting from this trend. As a result, Total Value Locked (TVL) on Lido has grown by 7.77% in the last week.
However, despite the increasing TVL, the number of unique users on the Lido protocol has fallen by 7.31% in the past month. This implies that while more users are staking their assets on Lido, fewer are actively using the protocol and engaging with its services. Despite this, the revenue generated by Lido has increased by 6.31% over the last week, according to Messari. So, Lido is still generating income and could continue to do so if user engagement increases.