Lido Overtakes MakerDAO in DeFi TVL, Surging Demand for Staking Solutions

• Lido has overtaken MakerDAO in TVL in DeFi by $0.05 billion with a total value staked of $5.96 billion.
• The increasing staked digital assets and the rise of interest in Lido among DeFi participants is attributed to the increased demand for Ether staking solutions since Ethereum shifted to a PoS consensus mechanism after the merge upgrade.
• Digital assets staked on Lido include Ether, Solana, Polygon’s MATIC, Polkadot’s DOT, and others.

The decentralized finance (DeFi) space is ever-evolving, and the competition between protocols is intensifying. This has been made evident after Lido overtook MakerDAO in Total Value Locked (TVL) by $0.05 billion. At press time, Lido had a TVL of $5.96 billion, compared to MakerDAO’s $5.91 billion.

Lido is a specialized liquid staking protocol that has been gaining traction since the Ethereum merge upgrade. This upgrade shifted Ethereum from the proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) protocol, leading to an increased demand for staking solutions in the space. Ethereum holders could now earn staking rewards by delegating their holdings to staking pools.

This has led to a surge in the number of digital assets being staked on the Lido protocol. According to the website, the largest staked asset is Ethereum with over $5.86 billion worth of staked ETH tokens. This is followed by Solana with over $26.087 million worth of staked SOL tokens. Other notable tokens staked on Lido include Polygon’s MATIC with over $45.093 million worth of staked MATIC tokens and Polkadot’s DOT with over $27.073 million worth of staked DOT tokens.

The increasing staked digital assets and the rise of interest in Lido among decentralized finance participants has also been accompanied by an increase in the price of LDO, Lido DAO’s native token. At press time, LDO had gained over 18% in the past 7 days and 14.67% in the past 24 hours.

The competition between MakerDAO and Lido is likely to intensify in the coming days. MakerDAO has long been the leader in DeFi TVL, and the fact that Lido has overtaken it is a testament to the project’s growing popularity in the space. With the continued development of DeFi protocols, the competition in the space is likely to heat up further in the near future.