The native token of popular Ethereum staking platform Lido Finance has surged around 25% in the last 24 hours. Here is the reason for the rise of the altcoin price!
Koinfinans.com As reported by CoinMarketCap, LDO, the 62nd largest token with a market cap of approximately $860 million, managed to climb from the day’s low of $2.29 to $2.85. This corresponds to a price increase of approximately 25%. The altcoin suffered some pullback after the rise and is now trading at $2.74.
It is also worth noting that LDO is the second altcoin among the top 100 cryptocurrencies with the highest increase in the last 24 hours.
One of the main reasons for today’s bullish price action could be the successful completion of the final test merge early Thursday morning. Named after Ethereum testnet Goerli Goerli merge, the final test before the mainnet merge, which is expected to be released on September 19. It went through a final test run on the Ethereum Goerli network before the merge took place on the mainnet.
The merge event will migrate Ethereum, which is currently running on a proof-of-work (PoW) consensus mechanism, to a more energy-efficient proof-of-stake (PoS) consensus mechanism. Apart from improving network efficiency, the update is also expected to increase Ethereum’s transaction speed and better security. However, it has some disadvantages; Specifically, becoming a network validator will cost users 32 Ethereums, or about $60,000 at current prices.
To get rid of this huge amount, Lido offered a workaround to retail users. Instead of depositing $60,000 in Ethereum, Lido allows anyone to earn returns on any amount of Ethereum staked on the platform. Currently, Lido offers a 3.9% return for its investors.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.