Exploring How Ethereum's Upgrade Will Benefit Lido Finance
Shanghai Capella upgrade is a major advancement on the Ethereum blockchain coming along on 23rd April. The upgrade is supposed to be a great deal as it will bring substantial improvements to the Ethereum network and also its supporting decentralized applications, including Lido Finance.
Lido Finance is a liquid staking platform that allows its users to stake Ethereum Tokens. There was recently a surge in the amount of Ethereum staking on the platform. Consequently, increasing the Total Value Locked (TVL), the total assets the platform is managing, of Lido finance.
In the last month, the TVL of lido finance has increased by the 18%, and even better that increased by 18% in the last seven days only, as the data from DeFilLama suggests.
Lido finance seems to be the most trusted platform at the time. As its TVL went up to $10.57 billion which makes up at least 21.66% of the entire DeFi ecosystem.
Lido comes first for Ethereum stakers
FTX collapse brought several other associated ecosystems with it. Lido Finance is one of the survivors of the damage caused. When the FTX incident happened back in November 2022. The Ethereum staking market at Lido dropped substantially for the first time after April 2022.
Even though in March the market of ETH staking on Lido went over by 30%. Before that MarkerDAO had taken over the place of Lido, with the highest TVL DeFi protocol. However, Lido managed to make a comeback in march. With the highest surge in its staking Annual percentage rate APR on 12th March.
Is there any bearish signal?
There has been a drop in the buying pressure of LDO. However, there was a surge in its price last week, much like the trend in the entire crypto market.
Moreover, since the beginning of March, there are certain indicators that signal a Bearish cycle for LDO. Also, the RSI and MFI show that the traders are preferring to sell LDO rather than hold on to it. Lastly, There also seems to be a drop in liquidity which can get worse with time if left unattended.