Lido fundamentals shine even as the wider crypto market struggles to regain traction

The crypto market has witnessed a turbulent few weeks after the FTX collapse but Lido Finance, a liquid staking protocol, has been a bright spot amidst the chaos. According to Data from DeFiLlama, Lido protocol has earned $1 million or more in fees daily since October 26. 

Lido fees and revenue over time. Lido has collected over $1M in fees every day since October 26th

Lido’s market capitalization does not match its on-chain fundamentals

While fees, deposits and revenue continue to increase for Lido, the market cap of LDO tokens is not keeping pace.

As mentioned above, Lido hit a record amount of fees on Nov. 10, at the same time the market cap decreased from $1.2 billion to $663.7 million.

According to Coingecko, during this same period, the price of LDO tokens dropped from $1.80 to a low of $0.90.

Despite the market-wide downturn, Lido is showing strong fundamentals on multiple fronts. The steady uptick in DAUs, revenue and new unique participants are all key components for assessing growth and sustainability within a DeFi platform.