As total staking assets on DeFi liquidity giant Lido Finance increase Lido Staked Ethereum (stETH) price too ETH gradually closing the gap between
stETH-ETH ratio rose as high as 0.9778. At the time of this writing, the stETH price is trading at $1,107 and the ETH price at $1147.
Moreover, Lido’s native token LDO has surged more than 25% to $0.66 in the past 24 hours. Despite losing some of its gains on its rise, the token is moving strongly with trading volumes bouncing over 150%.
What Does Lido Staked Ethereum (stETH) Price Reach Against ETH Price Mean for the Cryptocurrency Market?
with stETH Ethereum The loss of the 1:1 ratio between cryptocurrency It caused a huge sales wave in the market. According to analysts, with the improvement of the stETH-ETH ratio, the effect of a factor that hinders the recovery in the market is decreasing.
The big wave of sales on the stETH side has brought with it an increased risk of bankruptcy for companies such as Alameda, Three Arrows Capital and Celsius. According to a Nansen report, Celsius had invested client funds in Lido and currently holds at least $449 million worth of stETH in a public wallet.
Hasu, strategic adviser to Lido, and Tarun Chitra, founder of Gauntlet, announced on the Unchained Podcast on July 5 that Three Arrows Capital has liquidated its stETH holdings, but Celsius holds a large number of stETH locked up as collateral.
As Celsius seeks solutions to avoid bankruptcy, increasing the value of collateralized stETH may help ease some of the pressure.
*Not investment advice.