Lido DAO price moves higher as the Ethereum Merge moves a step closer to completion

The upcoming Ethereum Merge (ETH) is one of the most talked-about developments in cryptocurrency ecosystem. It marks the second-largest cryptocurrency market cap by market capital and undergoes the hard transition from proof-of work (PoW), to proof-of stake (PoS)

Lido DAO, a liquid staking platform that allows users access to their assets and generate yield through staking, is one protocol whose fate is heavily tied to the completion of the Merge.

TradingView and Cointelegraph Markets Pro data show that LDO’s price has risen 107.6% since June 30th, when it was at $0.42. It then reached $0.874 daily high on July 9, but has fallen to $0.65 as of this writing.

LDO/USDT 4-hour chart. TradingView

The three main reasons LDO has seen a sharp turnaround include the Merge on Sepolia, an increase in Ether deposits and the slow recovery in staked Ether (stETH), price relative to Ether’s spot.

Sepolia testnet merger

Although it was difficult to migrate to proof-ofstake, it became easier with the Merge of the PoW- and PoS-chains on Ethereum’s Sepolia testnet.

BREAKING NEWS: Ethereum passes another successful test of The Merge with Sepolia Goerli. Mainnet after. Don’t sleep. pic.twitter.com/YeQfghmm5O
July 6, 2022 — bankless.eth (@BanklessHQ).

This development means that there is one more Merge test to be conducted on the Goerli testingnet. If it goes down without major problems, the Ethereum mainnet will follow.

Lido is a specialist in liquid staking for Ethereum. Each step closer to PoS means that liquid staking platforms are able to benefit from each Ether holder who wants a simpler way to stake their tokens.

The demand for ether continues to grow

Dune Analytics data, which shows an increase in Ether deposits on the protocol, is evidence that interest in Lido staking has continued to grow.

Ether staked in Lido. Source: Dune Analytics

The chart shows that as of July 7, there were 4.128million Ether staked through Lido.

Statistics. Source: Lido DAO

Related: Ethereum testnet Merge most successful — ‘Hiccups won’t delay the Merge.

stETH starts to recover

LDO’s value has also been boosted by the recovery in stETH prices, which have lost their peg to Ether in the last few months due to distressed funds selling their stETH to avoid insolvency.

Dune Analytics data shows that the price for stETH now trades at around 97.2% of Ether’s price, an increase of 93.6% since June 18.

Chart of ETH:stETH prices for 1 hour. Source: Dune Analytics

Although stETH is still not at par with Ether in price, the move in the right direction and less selling pressure due to forced liquidations seem to have restored some investor faith in the token.

LDO has been able to benefit from this, since it is the largest liquid Ether staking service provider and issuer stETH.

com. You should do your research before making any investment or trading decision.
https://cointelegraph.com/news/lido-dao-price-moves-higher-as-the-ethereum-merge-moves-a-step-closer-to-completion

Close Bitnami banner
Bitnami