Lido DAO (LDO), a closely followed altcoin in Turkey, has risen by 15 percent over the past day. So, what is behind this rise of altcoin? Here are the details…
LDO rises on news of leading altcoin Ethereum (ETH)
cryptocoin.com As we have also reported, Lido, a liquid staking solution for Ethereum, has increased by more than 15 percent in the last 24 hours. Lido allows users to stake their ETH while participating in on-chain activities with no minimum deposit or infrastructure maintenance. So what’s causing LDO’s latest rise? Looking at the recent developments, the news of the Shanghai update of the Ethereum network may have affected LDO. Because, according to the statements, this update resolves some risks for investors who have staked coins in the network.
Ethereum developers said that the upcoming Shanghai update, scheduled for March, will add functionality to withdraw staked ETH. The confirmation is a relief for stakers and vested parties who now see the light at the end of the tunnel after ongoing speculation about the indefinite token lockdown. Since Beacon Chain went live in November 2020, Ethereum invested in the staking contract has accumulated at a fixed rate. Currently, 15.9 million ETH worth approximately $19.8 billion has been deposited. This represents 13.2% of the supply.
Increase in the number of investors
As noted recently, the Lido DAO (LDO) has experienced massive growth in investor interest. As a result, the market cap of the LDO token has seen a 35 percent weekly increase at the time of writing. One of the factors that caused the altcoin to grow like this was Lido DAO’s strong presence in the decentralized finance (DeFi) space. The DeFi platform managed to beat market leader MakerDAO by a few hours this week, despite experiencing a correction in its total locked value (TVL). Currently, while Dai, the major in the stablecoin space, is still a leader, his leadership over the staking platform is weak.
For example, MakerDAO’s TVL is $6.2 billion, while Lido DAO’s total locked value is $6.1 billion. But Lido’s impressive performance and Maker’s poor performance are nothing new. With the arrival of Merge on Ethereum, Lido experienced an increase in fee revenue commensurate with Ethereum PoS earnings. On the other hand, Maker experienced a poor revenue performance in 2022 due to the declining demand for decentralized lending in the crypto market.
Latest situation on LDO price
If we look at the latest data, the value of LDO has increased from $1.26 to $1.55. Currently, it has pulled back towards the $1.49 levels. However, it has also reached its highest level on a weekly basis. You can see the 24-hour chart of the coin as follows:
