Over the past week, Lido Finance’s token that powers Ethereum staking services has seen a dramatic rise. It went from $1.60 today to almost $2 today. Lido Finance native token LDO holders have seen their holdings increase by more than 20% over the past week.
According to CoinMarketCap, LDO has increased from $1.61 to $1.93 since Monday. This represents a run-up of 20.5%. The trading volumes of the token have increased by 19% over the last 24 hours.
Binance’s stablecoin BUSD, Tether’s USDT and Bitcoin are the most used trading pairs. Most of the trading activity is occurring on Binance FTX and KuCoin.
Lido finance LDO current price
The price of LDO has fallen by around 0.2% in the past 24 hours. LDO has dropped a staggering 89.43% since November 2021 when it hit $18.62.
Lido Finance, a liquid staking platform, is very popular. To earn attractive yields on their holdings, users can deposit tokens such as Ethereum and Polygon.
Users can earn staked versions of their holdings in exchange for a deposit. For example, depositing Ethereum earns you “staked Ethereum” (or stETH). The deposit token can be used to generate more yield in the decentralized finance ( DeFi) area.
Like many DeFi tokens, the LDO token is a governance token. It allows holders to vote and propose changes to the protocol. After the original Terra protocol fell to pieces in May, LDO holders had a huge influence on deciding whether Terra should be hosted on the platform.
Traders stake ethereum with lido
Although Ethereum isn’t yet a PoS-based blockchain network (although it could be in the future), Ethereum isn’t technically PoS-based. The project’s most ambitious upgrade has already seen an increase in deposits to Ethereum staking with Lido.
Data from Dune Analytics shows that LDO’s prices have risen this week. It also indicates that Ethereum deposits on the Beacon Chain have increased similarly to last week.
The Beacon Chain, the PoS version Ethereum, has been running in parallel to the proof of work (PoW), version from December 2020. The merge event will take place between September 10 and September 15.
Lido holds more than 30% of all Ethereum staking markets. It hosts 4.15 million Ethereum, which is more than $6.49 Billion at current prices.
The widespread adoption of stETH in the DeFi market is likely to be the reason for the project’s success. For instance, users can use the token to secure Maker’s stablecoin DAI, or deposit stETH on the lending portal Aave to earn more yield.
The same cannot be said about Coinbase’s new offering, cbETH. It was launched on August 24,. The crypto exchange based in San Francisco has still managed to capture 14.5% of the staking marketplace.
It remains to be seen if a centralized service such as this will ever surpass Lido’s offer.
