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Lido Finance, a decentralized finance protocol, has seen a significant increase in its Total Value Locked (TVL), which recently surged by nearly 7%. This growth is attributed to a combination of rising stake deposits and the appreciating values of cryptocurrencies like Ethereum (ETH) and Polygon (MATIC), which climbed by 7% and 6%, respectively.

The protocol's TVL reached $21.32 billion, marking a substantial monthly increase of about one-fourth. This expansion in TVL is partly due to Lido processing net new deposits totaling over seventy-six thousand ETH last week, which accounts for half of the market's staking activity. In stark contrast, Coinbase (NASDAQ:COIN), another major player in the cryptocurrency space, only managed to capture seventeen percent of this market share.

Binance, recognized as a leading cryptocurrency exchange, has been at the forefront of ETH withdrawal volumes with thirty-two thousand unstaked ETH. Additionally, the Annual Percentage Rates (APRs) for staked Ethereum have been on an upward trend since early December.

Layer-2 platforms have experienced varying degrees of activity with staked ETH (stETH). While Arbitrum saw a marginal increase in bridged stETH by one-hundredth percent and Polygon saw a rise of one percent, Base experienced a notable surge of thirty-six percent. However, Optimism witnessed a slight decline of less than half a percent.

https://www.investing.com/news/cryptocurrency-news/lido-finance-tvl-jumps-7-fueled-by-stake-deposits-and-crypto-rally-93CH-3252360