Lido Finance, a liquidity staking protocol, has seen a major surge in value after the activation of the Shanghai Ethereum upgrade. Less than 24 hours after the update, Lido Finance registered an additional $1.1 billion of assets, reaching a TVL of over $12.6 billion. This surge in value stands in contrast to the DeFi sector, which had seen a decrease in asset flow following the Q4 2021 regulatory climate.

The upswing in popularity of Lido Finance and its associated token, LDO, has led to a rapid increase in its value. Since the Shanghai update on April 13th, the price of LDO is up by seven percent and the token has more than tripled since December 2022, outperforming Bitcoin and Ethereum who have also seen significant gains. Thanks to the increase in asset inflow to the DeFi sector, roughly $53.4 billion of assets had been locked in various protocols as of April 14th.

The Shanghai update marked a significant milestone for Ethereum, as it meant the full transition to a Proof-of-Stake blockchain that allowed stakers and validators to access their coins. Additionally, the update allowed for over $30 billion of Ether to be returned to the market, which, according to most analysts, has no doubt significantly benefited Lido and its associated token.



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