Lido Finance node and validator state decoding

  • Lido maintained positive validator growth in the fourth quarter as well as healthy validator jurisdiction dispersion.
  • A look at the impact of recent market conditions on LDO and its TVL reveals some interesting facts.

Lido Finance just released its latest quarterly report revealing the state of node operators. The timely nature of the report may offer some insight into how Lido prepared for the fallout from Ethereum Shanghai Upgrade.

Realistic or not, here it is Lido’s market cap in terms of BTC

According to Lido’s quarterly report, the number of active node operators increased from 27 in Q3 to 29 in Q4. This was a minor change, but the validators are also working on more network diversification and performance improvements.

A good example to highlight this focus is that there were at least 1000 Lodestar validators on the chain-safe ETH. A 48% increase over the previous quarter.

The Lido Q4 update also revealed the state of jurisdictional dispersion of Lido validators. Most of the validator nodes are now distributed across large global regions.

These include Canada, the United States, Australia, Singapore, South Korea and Hong Kong.

Apart from the quarterly report, Lido’s LDO token made its way into the list of most bought tokens among the top 500 ETH wallets. This has happened in the last 24 hours at the time of writing and could have a significant impact on the price of LDO.

LDO is proving to be one of the best tokens that has so far been able to retain most of the gains made this year. For perspective, its price of $2.98 at press time is down just 1.14% in the last 24 hours. In contrast, BTC fell by 4.6% and ETH by 4.78% during the same period.

Lido LDO price action

Source: TradingView

It should be noted here that LDO is down roughly 12% from its YTD peak despite resistance against the March 3 selloff.

The average coin age of the token has currently declined from its February peak of 536.62 to the press time level of 534.45. The result confirms that some long-term holders are starting to do so I sell.

The growth of the Lido network and the average age of the LDO coin

Source: Santiment

The lack of favorable conditions to sustain network growth is evident in the slowdown seen in February as opposed to January.

Consequently, Lido’s network growth took a hit and is currently down to its 4-week lows.

How much is 1,10,100 LDOs worth today?

Recent market events have also had a significant impact on The total value of the LDO is locked. It hit a peak of $9.62 billion on Thursday (March 2), but has since fallen to $9.1 billion.

Lido TVL

Source: DeFi Llama

Finally, LDO’s TVL has seen significant growth over the past six months. For perspective, it was just $5.5 billion in November, highlighting strong growth since then.

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