For context, wstETH represents wrapped staked Ethereum, which tokenizes the ETH locked in a proof-of-stake network.
With the recent spike in Ethereum deposits, Aave stands to benefit. Users can now earn interest on their staked assets, allowing them to passively grow their holdings. Lido, a liquid staking protocol, has seen its daily activity surge by 46% over the last month. This growth can be attributed to users seeking to participate in staking while maintaining liquidity through Lido’s tokenized representation of staked ETH.
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