Lido’s fundamentals shine even as broader crypto market struggles to regain traction

In the weeks following the FTX debacle, crypto markets have experienced turmoil, but liquidity staking protocol Lido Finance has been a bright spot in the chaos. According to DeFiLlama, the Lido protocol has been earning $1 million or more in fees per day since Oct. 26.

Let’s analyze the fundamentals on-chain to see why this trend is here to stay.

What is behind Lido Financial’s growth?

Cosmopolitan Growth starts in May 2021, before FTX crashes. Fees hit an all-time high on Nov. 10, with fee income approaching $2.6 million. The protocol earns 10% of the total amount of Ethereum (Ethereum) Generated staking rewards From user deposits.

The data also shows that the steady growth of Ethereum PoS consensus deposits has translated into an increase in Lido’s fee income.

Cosmopolitan total deposit.Source: Dune Analysis

Lido’s service fee income is related to the Ethereum proof of rights (proof of stake) since Lido sent the received ether to the staking protocol. After FTX crashed, Ethereum activity grows Due to the increase in decentralized exchanges (agile) Activity. Ethereum fees and revenue also reached a 30-day peak on November 8, with fees of $9.1 million and revenue of $7.3 million.

Ethereum fees and income.Source: Token Terminal

Increase in new users and daily active users

The number of unique depositors joining the Lido protocol has reached 150,000, showing that Lido is continuing to attract new users.Rise in stand-alone deposits follows Centralized ‘earn money’ schemes show weakness Because of their exposure to FTX, Genesis, BlockFi, etc.

Lido’s unique deposit.Source: Dune Analysis

Daily active users on Lido and Lido (LDO) token holders are also increasing. According to Token Terminal, daily active users hit a new 90-day high of 837 on Nov. 17, further adding to the platform’s positive momentum.

Lido token holders and daily active users.Source: Token Terminal

Related: DeFi platforms cash in on FTX crash and CEX exodus

Lido’s market cap doesn’t match its on-chain fundamentals

While Lido’s fees, deposits, and revenue continue to grow, the market capitalization of the LDO token has not kept pace.

As mentioned above, Lido posted a record fee on November 10, while its market cap fell from $1.2 billion to $663.7 million.

according to Coingekduring the same period, the price of the LDO token dropped from $1.80 to a low of $0.90.

Lido’s circulation market value and transaction fee.Source: Token Terminal

Despite the overall market downturn, the Cosmopolitan is showing strong fundamentals on several fronts. A steady rise in DAU, revenue, and new unique players are all key components in assessing growth and sustainability within a DeFi platform.