Ethereum’s much-anticipated merger could help ETH reach new positions on the price chart. But not only that, ETH has another passenger – Lido DAO, which may become a star in the near future. After rising more than 280% in recent weeks, it remains one of the strongest assets in the market.
ride or die
LDO prices benefited primarily because of its association with Ethereum, the leading smart contract platform for total value locked (TVL). The main reason is – the platform holds a large amount of stETH tokens.
Here, the total amount of ether staked into the Merge smart contract via Lido has soared from 3.5 million on June 13 to 4.18 million at press time. Therefore, directly related.
At press time, LDO had surged more than 17% in the past day, surging above $2.6. Overall, the value of LDO has risen by an astounding 580% from its recent lows.
This could be the result of a series of momentum changes for the coin. For example, whales, dominant buyers took advantage of discounted prices.
According to insights from IntotheBlock, whales have nearly doubled their holdings over the past year, as shown in the chart below.
Even Ethereum whales love LDOs.became again most commonly used Smart contracts entered the top 500 Ethereum Whales in the last 24 hours of news time.
In addition to this, the staggering price increase also contributes to the growth of the total value locked (TVL) of the project. In just two weeks, the project’s TVL grown up At press time, from $6 billion to $7.09 billion.
Lido Finance has indeed had an uphill journey to reach its current inflection point — from fears of shrinking liquidity in collateralized derivatives to Lido’s native token surging to weekly highs.
The project even launched staking ether (stETH) support services in the Ethereum Layer 2 (L2) network, Optimism and Arbitrum’s ecosystem.
This will support the use of Lido’s ETH staking token (called wstETH) for staking ETH via a bridge to L2.
But concerns remain about this ETH-dependent relationship, as reality may not match expectations when the merger occurs.