Although the bear market is taking hold in the crypto market, Lido DAO had managed to register a growth of 22% after the news of its listing on Binance. However, the DeFi token has caught up with market reality. Its price thus fell by more than 40% after this very good rally at the start of the session.
Lido DAO Token: the second DeFi platform on the Ethereum blockchain
Lido DAO was developed in December 2020 following the launch of Ethereum 2.0 Beacon Chain. It is therefore a decentralized finance (DeFi) platform that offers staking solutions to proof-of-stake (PoS) protocols, including Terra Luna, Solana or even Ethereum, although the latter still uses the consensus mechanism of proof of work (PoW). That said, we already know that Ethereum will migrate to proof-of-stake by the third quarter of this year.
Since the launch of Beacon Chain, or Phase 0, developers have introduced staking to facilitate the transition from ETH to PoS. Thus, as soon as this phase was implemented, future blockchain validators could begin to block their tokens in staking protocols. Lido DAO turned out to be a solid choice, as the platform offers quite attractive return opportunities for stakers.
For example, when a user makes an ETH deposit, Lido provides them with “staked Ethers” or stETH tokens.
stETH tokens can be used like Ether, allowing you to earn ETH 2.0 rewards while enjoying, for example, returns from decentralized financial products.
Can we read on the Lido website
Currently, it is said to have over 13.5 billion values locked on the Lido protocol. He is indeed the second project by TVL on the Ethereum blockchain behind Curve DAO Token.
The Lido DAO also has its own governance token, which is the DAO. The latter can be used to pay transaction fees, manage Lido nodes and have a right to the organization.
Binance: the listing that comes at the wrong time
While it is true that the price of the Lido DAO Token (LDO) took 22% a few hours after the news of its listing on Binance, it won’t be long before the crypto drops more than 40%. The crypto therefore rose from $2.86 to $3.52 after its listing, only to drop towards $1.83. After its intra-day peak, Lido’s price lost almost 48% of its value.
Blame it on a crypto market that continues to correct severely. Bitcoin is approaching $30,000 during Monday’s session. Ethereum is also in a bad patch, its price having fallen by almost 10.29% over the last 24. In total, the overall value of cryptocurrencies lost almost 9.26%.
This is why despite a strong rebound after its introduction on Binance, the price of LDO ends up falling on the stock exchange.
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Lido DAO (LDO) price rises 22% after Binance listing announcement – BeinCrypto
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