Biggest Ethereum holder on market is facing another wave of inflows
The tokens of the largest holders of Ethereum on the market are seeing a strong rise in popularity and market performance. Thanks to the strong buying activity, LDO price is up by more than 10% in the last 24 hours, making it the most profitable digital asset in the market, and the reason behind this is simple.
Ethereum staking on rise
Expectedly, the price of the DAO’s token almost never moves without the performance change on the second biggest cryptocurrency on the market. Since the FTX implosion, Ethereum blockchain saw a massive spike in network activity and the number of new validators.
According to Delphi Digital, 14 November saw a 10% increase in the Ethereum staking rate, indicating a solid correlation between the two projects. Since Lido has the largest exposure to Ethereum staking in the market, Lido DAO, LDO and ETH benefit from the growing number of stakers on the network.
Prior to the Merge implementation, Lido saw a massive surge in the number of new users and a strong price rally of LDO token on the market. Since Lido was the biggest holder of staked Ethereum tokens in pre-Merge Ethereum days, users willingly joined the decentralized community to become part of the biggest validator in the ecosystem.
Nevertheless, Lido Finance faced a lot of criticism due to the mechanism it used to offer stakes in its DAO to users. Technically, each participant in the DAO holds a surrogate token instead of actual Ethereum. If a user chooses to leave the DAO, they will in return receive their ETH back after a certain period of time.
