- Lido Finance registers largest daily inflow of ETH shares in history.
- Currently, LDO is suffering from buyer exhaustion.
IN tweet published on February 25, the leading platform for betting on liquid Ethereum (ETH), Lido Finance (LDO), confirmed that it had the largest daily inflow of stakes with over 150,000 ETH staked.
The Lido protocol has registered the largest daily inflow of stakes to date with over 150,000 ETH staked. 🎉
Once this number was reached, an interesting (but important) protocol security feature called Staking Rate Limit was activated.
Here’s how it works🧵👇 pic.twitter.com/ngBtWz7q18
— Lido (@LidoFinance) February 25, 2023
Chain analysis of the Lookonchain platform showed that the said 150,000 ether tokens were staked by Tron founder Justin Sun.
In the early hours of February 26, Sun staked an additional 10,000 ETH, bringing its total ETH wallet to 200,100 ETH, worth approximately $320 million.
Justin Sun bet 10,000 $ETH($16 million). @LidoFinance again just now.
He currently bet 200,100 $ETH ($320 million).
And received an income of $18.68 ETH in 24 hours, APR is ~3.6%.https://t.co/oZxE8KpjHy pic.twitter.com/OSFlkIUOGM
— lookonchain (@lookonchain) February 26, 2023
According to Lido Finance, the surge in staked ETH in day trading led to the activation of the protocol’s security feature known as stake cap.
The Wagering limit it is used on Lido as a dynamic mechanism to keep the protocol safe and to prevent prize dilution caused by large inflows of stakes.
Based on recent deposits, this mechanism reduces the total amount of sETH that can be minted at any time using a sliding 24-hour window.
Is your portfolio green? Check LDO Profit Calculator
The protocol capacity is replenished block by block, with a recovery rate of around 6,200 ETH per hour. The limit applies to all parties trying to mint stETH, regardless of the method used.
Status of ETH staking on Lido
According to data from Dune Analytics, 5.35 million ETH tokens were staked through Lido Finance, which increased its ETH staking market share to 29%.
With the Shanghai update due to take place in a few weeks, there has been a surge in the creation of new liquid ETH staking protocols over the last few months, leading to a gradual decline in Lido’s market share.
To provide context, Lido Finance had 32% of all ETH staking as of May 2022. However, with centralized betting platforms such as Coinbase offering liquidity providers higher annual percentage rates (APR), these platforms have witnessed a surge in ETH staking.
As for the APR betting on Lido, it was fixed at 4.74% at the time of publication. It peaked at 10.20% last November and has been on a downward trend since then.
How much is 1 10 100 LDO worth today?
LDO in the last 24 hours
At press time, the LDO was trading at $3, and its price was up 10% in the last 24 hours. However, while the LDO price rose, trading volume fell 19% over the same period, according to data from CoinMarketCap.
This kind of discrepancy between price and trading volume is usually common in a market where buyers are exhausted. This suggested that a potential LDO price reversal was imminent if the liquidity needed to drive the price up did not appear in the market.