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The crypto market had a turbulent few weeks after the collapse of FTX, but Lido Finance, a liquid staking protocol, was a beacon of hope amid the chaos. According to data from DeFiLlama, the Lido protocol has brought in $1 million or more in daily fees since October 26.

Let’s analyze the fundamentals of the channel to see why this trend has continued.

What is behind the growth of Lido Finance?

Lido’s growth started in May 2021, before FTX collapsed. Fees hit an all-time high on Nov. 10, with fee revenue nearly surpassing $2.6 million. The protocol earns 10% of the total Ethereum (ETH) generated staking rewards user deposits.

The data also shows that a steady increase in deposits in Ethereum’s PoS consensus translates to an increase in Lido’s fee capture.

Total Lido deposits. Source: Dune Analysis

Lido fee revenue is moving in tandem with Ethereum Proof-of-stake (point of sale) gains since Lido sends the received Ether to the staking protocol. After the collapse of FTX, Ethereum activity has increased thanks to a resumption of decentralized exchanges (DEX) activity. Ethereum fees and revenue also hit a 30-day high on Nov. 8, posting $9.1 million in fees and $7.3 million in revenue.

Ethereum fees and revenue. Source: Token Terminal

New and daily active users keep increasing

Unique depositors in the Lido protocol reached 150,000, demonstrating that Lido continues to attract new users. The increase in unique deposits comes next centralized “win” programs have shown weaknesses due to their exposure to FTX, Genesis, BlockFi and others.

Unique deposits of the Lido. Source: Dune Analysis

Daily active users and Lido Token (LDO) holders are also increasing on Lido. According to data from Token Terminal, daily active users hit a 90-day high of 837 on Nov. 17, further adding to the platform’s positive momentum.

Lido token holders and daily active users. Source: Token Terminal

Related: DeFi Platforms See Profits Amid FTX Collapse and CEX Exodus

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

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

As mentioned above, Lido hit a record high in fees on Nov. 10, as the market capitalization rose from $1.2 billion to $663.7 million.

According Quincekoduring this same period, the price of LDO tokens fell from $1.80 to a low of $0.90.

Lido market capitalization and fees. Source: Token Terminal

Despite the general market slowdown, Lido is showing solid fundamentals on several fronts. Steady rises in DAUs, revenue, and new unique participants are all key to gauging growth and sustainability within a DeFi platform.