Lido Finance shows confidence in Ethereum and goes all in

Since the Shanghai upgrade for Ethereum, it is possible to unstake tokens from the Proof-of-Stake protocol. That change continues to increase interest in Ethereum staking, the data shows.

Lido Finance is a party that makes Ethereum staking possible for smaller individuals or people who have no technical knowledge themselves. It now appears that Lido itself also puts all its Ethers in the Proof-of-Stake protocol and therefore has a lot of confidence in the crypto coin.

Trust in Ethereum

Lido Finance recently decided through the export of proposal 161 to stake all of its Ethereum reserves. This involved a total of 20,300 Ethereum that is currently in stETH. As a result, Lido Finance’s reserve pool consists of 20.7 percent stETH (approximately $63 million) and 75.7 percent LDO (approximately $231 million).

With this policy change, Lido Finance now has a total balance sheet of $304.7 million. All told, the protocol now has 33,000 stETH in reserve pots.

Furthermore, as you can see, Lido Finance also has some DAI and USDT on its balance sheet, but that is negligible compared to the amounts of stETH and LDO they hold.

LDO is bullish

Furthermore, LDO, Lido Finance’s token, is also showing a lot of bullish price action right now. After testing the support at $1.62 on January 15, 2023, the project managed to gain 35.23 percent to its June 3 level of $2,208.

At the time of writing, the token is ticking in at a price of $2.21, placing it at number 31 on CoinMarketCap. Over the past week, the project is up 11.71 percent and ranks among the best performing tokens in the market.

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This also seems to be due to the improved sentiment around Staked Ethereum (stETH), which you can see in the chart above. Ultimately, the popularity of Staked Ethereum is what Lido Finance has to rely on.

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