Lido Finance has surpassed MakerDAO as the market’s largest DeFi protocol, with $5.9 billion secured on its staking platform.
Leading decentralized lending protocol MakerDAO’s supremacy in the DeFi market has been usurped by the liquid staking protocol Lido Finance, which has the largest total value locked in (TVL).
DeFiLlama, a data aggregator for the DeFi market, reports that Lido Finance presently has $5.9 billion in TVL, followed by MakerDAO and AAVE with $5.89 billion and $3.7 billion, respectively.
The sharp growth in Lido’s TVL has been linked to the massive rise in demand for Ethereum staking solutions. According to recent research by Nansen, the Ethereum Merge, which marked the network’s change from Proof-of-Work (PoW) to Proof-of-Stake (PoS), led to a significant increase in demand for such solutions.
Lido Finance has taken advantage of this chance to strengthen its position in the business and has now emerged as the leading DeFi protocol.
According to the Nansen study, Lido presently owns around 31% of all staked ETH. This is a huge domination compared to the market share of other large cryptocurrency exchanges, such as Coinbase and Kraken, which have 15% and 8.5% market shares, respectively.
Lido Finance presently has $5.8 billion worth of staked Ether, according to the protocol’s official website. In contrast, around $43.9 million worth of ETH is staked on Polygon, $23.2 million on Solana, $11 million on Polkadot, and $2.2 million on Kusama.
Over the previous year, the DeFi market’s TVL saw a significant collapse, losing more than 70% of its value, falling from over $167 billion in January 2022 to $38.6 billion at the time of writing.
The growing number of cyberattacks and hackers in the DeFi industry also contributed to the sector’s overall collapse. According to sources, DeFi protocols incurred the biggest losses in 2022, with the largest vulnerability being the Ronin bridge breach, in which hackers stole digital assets worth over $620 million.
While DeFi yields remain low across the board, the market has shown extraordinary resilience in the face of what is now considered the most severe bear market in history.
Also Read: $500 million is added to Solana’s market capitalization as SOL surges 15% every day
