Lido’s finances recorded a surge recently. LDO token has increased from 0.6 to 1.62 USD summing up to over 170%. It is speculated that this increase is a result of the upcoming merge on the Ethereum network.
This occurrence contradicts Lido’s recent encounter where users were pulling out of the platform due to the de-pegging concerns. This affected Lido’s position so much that it dropped drastically.
Things have taken a better turn for the staking platform as it now holds over 30% of the amount of staked ETH. This implies that they account for over 4.1 million ETH which is equivalent to $5.6 billion at the current market price.
Lido’s impact on the ETH staking market is outstanding. Users can now stake ETH in Lido and get stETH of a 1:1 ratio in return. Lido has also recorded positive growth in liquid staking across all networks. Users can earn rewards on staked ETH, they can also use staked ETH on decentralized apps such as Curve, Zapper, and Aave.
Additionally, Lido has recorded a remarkable increase in the number of users on the platform. The Lido ecosystem keeps growing in the face of difficult DeFi times. This is presumably in anticipation of the Ethereum merge event scheduled for September.
After the merge is completed, ETH will totally transition to a proof of stake consensus. The more users stake Ether on Lido Finance, the greater the protocol’s capitalization and growth.
These are current market predictions as Lido’s TVL has recorded a 3% increase in 30 days. The drag in its increase is understandable due to the recent FUD in the crypto ecosystem. However, the value appreciation is substantial. In the coming months, the LIDO token may further appreciate in value as more stakers troop to the protocol.
