Lido (LDO), the leading liquid staking derivatives (LSD) protocol, recently made waves in the crypto community by enabling staked ETH (stETH) withdrawals. Expectations were high as many anticipated a surge in stakers unstaking their ETH.

However, contrary to these predictions, Lido has witnessed a remarkable increase in ETH deposits, reaching a record-breaking level. This surge has also been reflected in the protocol’s native token which has recorded a rally of more than 20% in the past week.

ETH Deposits Soar to New All-Time High

Despite the introduction of stETH withdrawals, Lido experienced a surge in ETH deposits, defying expectations of widespread unstaking. On Friday, the platform witnessed a significant milestone as the total number of ETH deposited hit an all-time high.

According to data provided by Lido, an astounding 6,373,289 ETH is currently staked with Lido, equivalent to more than $11.5 billion. Interestingly, while ETH deposits on Lido continue to soar, stETH withdrawals have remained stagnant around the 450,000 ETH mark, as reported by data from Nansen.

It is worth noting that these withdrawal requests have yet to be processed, contributing to the overall stability of stETH withdrawals. This trend raises questions about the anticipated unstaking frenzy, prompting a closer examination of the factors influencing stakers’ decisions.

As the most significant liquid staking derivatives protocol, Lido holds an impressive 75% market share, surpassing its competitors in the Liquid staking (LSD) space. Notably, according to data from Nansen, Coinbase and Rocket Pool trail behind, occupying the second and third positions.

Furthermore, while it may sound like positive news that ETH deposit is surging while withdrawal flattens, it is worth noting there are several reasons behind this so as not to get carried away. On the one side, the stabilized withdrawal can be attributed to the pending processing of withdrawal requests.

On the other side, it can be attributed to stakers’ long-term commitment to the protocol and the attractiveness of Lido’s offerings amidst the volatile crypto landscape.

Lido Surges 20% In The Past Week

Along with its surge in market share, Lido native token LDO’s price has experienced an upward trend in the past week up by more than 20%. Lido has surged from a low of $1.81 seen last Friday to trading as high as $2.48 on Wednesday.

LDO market capitalization has also recorded huge gains in the past 7 days. LDO’s market cap has surged 20.7% from a cap low of $1.5 billion to a high of over $2 billion on Wednesday. Meanwhile, LDO’s daily trading volume has only continued to range between $60 million and $100 million throughout the week.

Lido DAO (LDO)’s price is moving sideways on the 1-Day chart. Source: LDO/USDT on TradingView.com

Interestingly, the asset has plunged over the past 24 hours down by 4.4%. LDO currently trades slightly above $2 with a price of $2.18 at the time of writing with a 24-hour trading volume of $62.1 million.

Featured image from Analytic Vidhya, Chart from TradingView

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