Will Lido’s AUM grow past the $1 billion mark?

Journalist

Posted: November 12, 2023

• Lido’s AUM is expected to cross the billion-dollar mark.
• Though activity on the protocol declined, new developments may aid growth.

Lido [LDO] has been the most dominant liquid staking solution in the DeFi space for the longest period of time. Due to the rising interest in staking over the past few months, Lido has been able to see large growth.

High hopes

According to Token Terminal’s data, Lido’s AUM could exceed $10 billion in the coming market cycle. Lido’s AUM (assets under management) exceeding $10 billion signaled significant growth for the platform. It meant that more people were entrusting their assets to Lido.

The platform could thus gain more influence in the crypto space.

Lido’s $ denominated AUM could exceed $100B in this cycle? pic.twitter.com/lc7d7vNFsH

— Token Terminal (@tokenterminal) November 11, 2023

One factor that would play a role in Lido’s growth in terms of AUM would be daily active users on Lido. Over the last month, the number of active users on the network fell by 25.2% in the last month. This impacted the revenue collected by Lido as well.

If this trend of falling activity continues, it would hinder Lido’s chances of reaching the 1 billion AUM mark.

Source: token terminal

However, things can improve for Lido with their new updates.

Is your portfolio green? Check out the Lido Profit Calculator

Lido is working on something new called the Community Staking Module (CSM). This is an extra feature to make more people interested in Lido. It fits with what the DAO (that’s like the management team) wants to do and uses a special high-tech design.

Another aspect that works in CSM’s favor is the fact that users just need 2–4 ETH to join. It is all about getting rewards, which will work towards increasing the popularity of the community-based model.

Lido contributors have proposed a new staking router module – Community Staking Module (CSM) – which allows for permissionless entry with a bond for solo and community stakers. https://t.co/lQIWE8Lb45 pic.twitter.com/CJZxFnN4TW

— Lido (@LidoFinance) November 10, 2023