Decentralized finance protocol Lido Finance (LDO) posted double-digit gains after the last test before the next merger next month.
Lido Finance’s native token, LDO, has risen 13 percent in the last 24 hours. According to CoinGecko data, LDO is the 46th most valuable cryptocurrency with a market cap of $1.5 trillion. LDO is currently trading at $2.85.
Why Did Lido Finance (LDO) Rise?
“Why did Lido Finance (LDO) rise?” When we say that, we see that one of the main reasons for the rise is the successful completion of the last merge tests carried out on Thursday morning. The Goreli Merge is of great importance as it is the final test before the expected Merge on September 19.
Together with Merge, Ethereum (ETH) will switch from Proof of Work mechanism to Proof of Stake. In addition to increasing the efficiency of the network, Merge’s Ethereum network is aimed to increase the number of transactions and make the network more secure. Of course, it still has disadvantages. One of them is that users who want to become network validators lock 32 ETH to the system. This means an amount of more than 60 thousand dollars. To get rid of this amount, Lido offered a temporary solution to its users. Instead of investing this huge amount on the Ethereum network, Lido allows its users to return any amount of income staked on the platform. Currently, this rate of return on Lido is 3.9 percent.
The total number of locked assets in Lido Finance is around $8.28 billion. According to Dune Analytics, Lido has approximately 48,881 investors who have staked more than 4.14 million Ethereum.
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