Decentralized finance protocol Lido Finance (LDO), coming next month mergedouble-digit rise after the last test before.
Lido Finance’s native token, LDO, has risen 13 percent in the past 24 hours. According to CoinGecko data LDO With a market cap of $1.5 trillion, it is the 46th most valuable cryptocurrency. LDO is currently trading at $2.85.
Why Did Lido Finance (LDO) Rise?
“ Why did Lido Finance (LDO) rise? ”, we see that one of the main reasons for the rise was 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 Lidooffered its users a temporary solution. Lido Instead of investing this huge amount on the Ethereum network, it allows its users to earn 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 stands at $8.28 billion. According to Dune Analytics, Lido has approximately 48,881 investors who have staked more than 4.14 million Ethereum.
