Learn Why Interest in Altcoin Is High

As recently highlighted, Lido DAOs (LDOs) have seen a significant increase in investor interest. As a result, the market cap of LDO tokens has increased by 35% each week until the time of writing.

One of the factors behind this growth of altcoins was Lido DAO’s strong presence in decentralized finance (DeFi). The Total Value Lock (TVL) has been fixed, but this week the DeFi platform was able to overtake market leader MakerDAO by several hours.

Today, stablecoin parent company Dai still leads, but only marginally on staking platforms. For example, MakerDAO has a TVL of $6.2 billion, while Lido DAO has a total locked value of $6.1 billion.

But Lido’s impressive performance and Maker’s weak performance aren’t just for now. With the advent of Merge, Lido experienced an increase in fee income commensurate with his Ethereum PoS profits. Meanwhile, Maker’s revenue performance has been subdued in 2022 as demand for decentralized lending has declined in the cryptocurrency market.

But what is Lido DAO?

Lido was developed to facilitate staking of the major altcoins on the market, including Ethereum (ETH), Solana (SOL) and Polygon (MATIC). As well as having an intuitive platform, investors can stake assets with a small investment.

A good example of this is ETH staking. Crypto investors need to lock up at least 32 ETH to earn income from altcoins. In fact, it is not affordable for most cryptocurrency investors. Lido solves this problem by providing a platform with no minimum deposit or infrastructure maintenance.

Another highlight of Lido is Ethereum. staking Liquid. Therefore, we provide ETH tokens corresponding to the amount of ETH that we have staked, so this value can be used in DeFi’s mode, and its income exceeds staking.

That token, an LDO, gives voting rights to its holder. The number of DAO participants continues to grow, with collaborators working together to build the future of his Lido. To make this step bigger and bigger, the network will use his LDO tokens. This is because DAO is responsible for granting governance rights.

Something Might Threaten Lido’s Growth

However, it is important for cryptocurrency investors to know that LDOs will not rise forever. First, it is valid to consider that other his Ethereum staking platforms are on the rise and this could take a lot of market away from Lido DAO.

According to data from Dune Analytics, the platform’s share of staking will drop to just 29% in early 2023, a move it hasn’t seen since April 2022.

One of the factors that may have prompted this move is the market’s view of the centralization of staking on major smart contract platforms. To make this modality more decentralized, investors are looking for alternatives.

In addition to other staking platforms, Lido DAO There is a possibility that this market will be taken over by virtual currency exchanges. After all, it is very practical to keep ETH locked on platforms where you already buy altcoins.