Token from Ethereum Staking Platform Lido Finance Thunders Down

The token of Lido Finance (LDO) has suddenly lost 10 percent of its value. That drop represents the largest price drop within the top 100 cryptocurrencies on the market. At the time of writing, LDO is trading at $1.74 and has lost 11.55 percent in the past 24 hours.

What is Lido Finance?

The drop in LDO comes after enthusiasm to stake Ethereum on the new Proof-of-Stake blockchain has waned. Lido Finance is a staking platform on which it is possible to stake Ethereum, Polygon, Solana and other Proof-of-Stake coins. As of its launch in December 2020, Lido Finance is giving a 3.8 percent return on Ethereum’s staking. What makes Lido Finance so easy is that you don’t have to do anything except pin the token there.

The cool thing about staking at Lido Finance is that in exchange for staking your Ethereum, you get another token back. That token represents a synthetic version of your Ethereum stake. This makes it possible to sell your stake before the new Ethereum blockchain is actually launched. That is why Lido Finance also calls the staking Liquid Staking.

Huge drop in Ethereum strike

Dune Analytics reveals that the number of Ethereum parked in Lido Finance last week is just 33,204. That is in stark contrast to the highs of March and April this year. During that period, at least 237,000 Ethereum was placed with Lido Finance in nine out of ten weeks.

Lido Finance is slowly but surely being overtaken by established names within the industry. As of May 9, Lido Finance has welcomed 50,000 new strikers, while Coinbase brought in 131,000, Kraken 98,000 and Binance 59,000. Despite this, Lido Finance still has a market share of 30.88 percent.

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