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The long-awaited Ethereum Merger could help ETH reach new positions on the price chart. But not alone, ETH has another passenger – Lido DAO, which could become a star player in the near future. It remains one of the market’s strongest assets after a 280%+ rally in recent weeks.
Ride or Die
The LDO price benefited largely due to its association with Ethereum, the leading Total Value Locked (TVL) smart contract platform. The main reason was – the platform had a huge number of stETH tokens.
Here, the total number of Ether staked in the Merge smart contract through Lido has increased from 3.5 million on June 13 to 4.18 million at press time. Hence the direct connection.
Source: DeFiLama
At press time, LDO was up more than 17% in the last day as it surged above the $2.6 mark. Overall, LDO has amassed a staggering 580% increase in value since its recent low.
This could be the result of a series of momentum shifts for the token in question. For example, whales, the dominant buyers benefited from the reduced price.
According to IntotheBlock’s knowledge, whales have almost doubled their holdings in the past year, as shown in the chart below.
Source: ITB
Even Ethereum whales loved LDO. Once again, it did more used smart contract among the top 500 ETH whales in the last 24 hours of press time.
In addition, the phenomenal price increase also helped to increase the total value of the locked project (TVL). In just two weeks, the project’s TVL grew up from $6 billion to $7.09 billion at press time.
On good terms
Lido Finance has had a bumpy ride to the current cross – from fears of shrinking liquidity for the derivative stake to Lido’s native token soaring to a weekly high.
The project even started offering staked Ether(stETH) support across the ecosystem of Ethereum Layer two (L2), Optimism and Arbitrum networks.
This would support Ether staking via bridges to L2 using Lido’s ETH staking token, called wstETH.
However, there are still concerns about this ETH-dependent relationship, as reality may not meet expectations when the Merger takes place.
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