After the last test before the merge, Lido, a popular Ethereum staker, saw his token support jump by double digits. Over the past 24 hours, the native token behind the Ethereum staking platform Lido Finance climbed more than 18%.
According to CoinMarketCap, LDO is the 62nd largest token, with a market cap of almost $860 million. It’s now trading at $2.75.
Today’s bullish price action can be attributed to the completion of the final merge test on Thursday morning. The Goerli merger, named after Ethereum’s testnet Goerli on September 19, is the final test before the mainnet merg .
The merger event will convert Ethereum from a proof of work (PoW), to a more efficient proof–of-stake consensus mechanism (PoS).
The upgrade will not only improve network efficiency but also increase Ethereum’s transaction speed as well as security. However, there are some drawbacks. For instance, users will need to spend 32 Ethereum (roughly $60,000) to become network validators.
Lido offers a solution for retail customers to get around the large sum.
Lido allows anyone to earn a return on any amount of Ethereum they stake with it, instead of $60,000 for Ethereum. Lido currently offers a 3.9% yield to stakers.
The total value locked (TVL), on Lido Finance, is $8.28 billion. This suggests data from DefiniLlama.
According to Dune Analytics, Lido has almost 48,881 unique depositors who collectively stake more than 4.14 Million Ethereum.
Other leading tokens in the Decentralized Finance (DeFi) sector, such as Curve (7.8%), Sushi (10.58%) and Compound (8.2%), have extended their bullish actions over the last 24 hours.
Ethereum, which is the second-largest cryptocurrency, with a market capitalization $229 billion, also saw 10.58% gains over the last 24 hours.
According to CoinMarketCap, Ethereum traded at $1,885, an increase of 80% in the past 30 days.