Lido Finance Token Tumbles Before Ethereum Merge

Tumble seems to be due to slow demand for staking and a lack of enthusiasm for the merge.

LDO has taken a 10% drop si nice this morning , this drop is the largest drop financially for the top 100 cryptocurrencies. 

The reason could be the lack of enthusiasm towards the oncoming Ethereum merge.

The oncoming Ethereum merge is due this September 15, which will change the blockchain from a Proof of Work system to a Proof of Stake system. There are also talks of an ETHPOW second network on the horizon.

The problem, it would seem, is not many are excited about the merge or change. Dune analytics has made a recent report of ETH deposits falling to only 33.204 ETH weekly from highs in April of well over 230K ETH staked.

Also Read: Big firms seem to dominate post Ethereum merge

Lido Finance is a liquidi staking service for blockchains such as Ethereum, Polygon,and Solana. This means that one token can be staked in order to receive another type of token. The DAO of Lido provides a yield of 3.8% on ETH deposits.

Lido has experienced a stagnation since this past May as the depositors of the platform have been eclipsed by those on Coinbase, Binance, and Kraken which were at 131K, 59K,and 98K respectively. All of this while Lido still holds a majority share of the market, about 31%

Leave a Reply