Home Markets Lido Finance Leads DeFi Rally as Ethereum Rises in Recovery

Lido Finance Leads DeFi Rally as Ethereum Rises in Recovery

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Lido Finance Leads DeFi Rally as Ethereum Rises in Recovery

DeFi tokens in Financing of the Lido (YES), Compound (COMP), and Synthetix (SNX), have seen significant gains over the past 24 hours, according to data from CoinMarketCap.

Lido Finance’s native token, LDO, gained over 16.2% earlier this morning, marking the biggest gainer among the top 100 cryptocurrencies by market capitalization, according to data from CoinMarketCap.

Liquid staking platform allows users to stake Ethereum and earn a small return on their holdings. And, unlike direct staking on Ethereum tag stringLido stakers receive stETH in return, which can continue to be used across the market.

LDO changes hands at around $1.88 and now boasts a market capitalization of nearly $587 million. The price of the token is still far from its all-time high of $18.62.

COMP, the native token that powers the Compound lending platform, has also gained 9.58% in the past 24 hours. The DeFi token enjoys a market capitalization of nearly $357 million, but has lost 94.52% from its all-time high of $911.20, according to data from CoinMarketCap.

Synthetix’s native SNX token has also grown by 13.94% in the past 24 hours.

The 57th largest cryptocurrency SNX has a market capitalization of $762 million and is trading at $3.24, down 88.59% from its all-time high of $28.77 recorded in February 2021, according to the data of CoinMarketCap.

Nearly $42.67 million worth of short trades were liquidated in the cryptocurrency market in the last bullish day, reports coin glass.

Red bars indicate short liquidations; green bars indicate long sell-offs. Source: coin glass.

DeFi Tokens Rally Around Ethereum Merger

The main reasons for today’s bullish price action are likely next Ethereum merger and improvement Challenge activity.

Nearly 13.458 million Ethereum was staked on Ethereum before the network upgrade, according to data from Dune analysis.

Amount of Ethereum staked. Source: Dune analysis.

The total value locked (TVL) on all blockchains has increased by 3.51% in the last 24 hours, according to data from DéfiLlama.

Lido’s TVL also grew by 8.74% over the same period, making it the largest among the top 10 DeFi applications on Ethereum by TVL, according to data from DéfiLlama.

Ethereum, the network that powers over 50% of all DeFi activity, has risen nearly 10% in the past 24 hours on hopes for the next consensus transition price.

ETH is trading at $1,591 each, according to data from CoinMarketCapreversing its weekly losses with a 30% increase in daily trading volumes.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.

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