Can Lidos Dominance in the ETH Market Boost Ethereums Price

CryptoSlate Reports:
Over the past few days, Lido has outperformed Ethereum in terms of earnings. Despite growing interest in stakes, ETH prices have fallen.
In the past few days, Lido’s earnings [LDO] have exceeded those of Ethereum [ETH].
Lido Shows Growth
Last month, Lido Finance accrued $20.8 million in fees within just one week, surpassing Ethereum’s own earnings of $19.8 million during the same period.
This impressive performance has positioned Lido Finance as the second-highest earner in the cryptocurrency sector for that week, trailing only behind Tron [TRX], which earned $33.7 million.
Lido Finance’s momentum has continued throughout the entire month. Over the month, Lido has generated $98 million in fees, an 8% increase compared to the previous month.
This strong fee generation is likely due to Lido’s dominant position in the ETH market. As of the time of writing, Lido holds over $33.4 billion in total staked assets, commanding a 29% market share in staked ETH.
Lido’s total market value rose by 1.36% this week, reaching $33.48 billion. This surge was driven by a wave of new ETH staking deposits, with 95,616 ETH net added via Lido in the past seven days.
While the 7-day stETH APR saw a slight decrease of 0.04% to 2.96%, there are positive indicators elsewhere.
Wrapped stETH (wstETH) bridged to Layer 2 networks saw a significant increase of 7.19%, totaling 141,586 wstETH.
Arbitrum [ARB] leads with 65,290 wstETH, followed by Optimism [OP] with 27,879 wstETH. Both networks saw slight declines over the past week.
wstETH deposited into lending and liquidity pools also saw marginal increases, totaling 2.7 million stETH and 83.5 million stETH, respectively.
wstETH connected to the Cosmos network also saw a slight uptick, reaching 1,788 units over the past week, a 2.12% increase.
However, the 7-day trading volume of stETH decreased by 7.25% compared to the previous week, totaling $1.23 billion.
While Scroll’s wstETH saw a significant 86.26% increase, other networks such as Base, Polygon, Linea, and zkSync Era experienced minor declines.
What’s Next for ETH?
The popularity and growth of the Lido protocol suggest a growing interest in ETH among users.
Regardless of current realities, here’s the market cap of LDO in BTC terms
Despite ETH’s price potentially stagnating at the time of writing, the surge in stakes indicates existing users believe in ETH’s long-term potential.
As of the time of writing, ETH’s trading price is $3,336.23, a decrease of 3.15% in the past 24 hours.