Lido DAO’s governance token, LDO, has risen by virtually 24% for the reason that begin of January 2023 thus far. At its peak, LDO rose by 34% in two incomplete days into the brand new yr.
Like all such irregular actions within the crypto market, within the case of LDO, there’s a motive that led to the implications depicted on the value chart. This time the catalyst was the truth that Lido DAO overtook MakerDAO, the issuer of one of many largest stablecoins in the marketplace, DAI, when it comes to whole worth locked (TVL).
Beforehand top-ranked MakerDAO, with $5.93 billion in TVL, was pushed into second place by Lido Finance, whose liquid staking providers in varied networks places it at $5.98 billion. On the identical time, the totally diluted market capitalization of the Lido DAO token is $1.17 billion, which is greater than 5 instances lower than the overall worth locked on the platform.
What does LDO should do with it?
Lido Finance’s emergence because the primary by TVL is a particular success for the decentralized autonomous group, Lido, which administers the protocol. Consequently, LDO being the governance token turns into fascinating for individuals who need extra energy within the course of.
The large hole in capitalization and TVL, in addition to the chance to get a slice of energy within the “now greatest” DeFi undertaking has lifted LDO above all others in 2023. Up to now.