- SEC lawsuit against Coinbase drove users to decentralized staking protocols like Lido.
- Lido experienced a surge in activity and revenue as well.
Coinbase, one of the largest centralized exchanges for staking ETH, faced a setback with the SEC lawsuit, causing users to seek alternative platforms. This shift led to a significant boost for decentralized solutions like Lido [LDO], resulting in a surge of ETH staked on its protocol.
Is your portfolio green? Check out the Lido Profit Calculator
Coinbase loses its user base?
The SEC lawsuit against Coinbase and other exchanges instilled fear among users who relied on these platforms for staking ETH. As a result, many users migrated to other platforms.
Lido emerged as a major beneficiary of this situation, with an impressive 13% increase in ETH staked on its protocol. This growth was mirrored by other decentralized liquid staking protocols, such as Rocket Pool and Frax Finance, indicating a broader trend in the market.
Jerome Powell says crypto has staying power.
While the majority of ETH staked on centralized exchanges continues its exodus from @coinbase to decentralized providers.
– $LDO +13%
– $FXS +13%
– $RPL +19%
– $SWELL +103% pic.twitter.com/wY7E853wkr— Emperor Osmo? (@Flowslikeosmo) June 22, 2023
The impact on Lido’s activity was evident, as the protocol experienced a substantial surge in user engagement. According to Token Terminal, daily active users on the protocol grew by 14.2% within the last 24 hours. The revenue generated on the protocol also witnessed a spike, appreciating by 14.2% during the same period.
Lido’s governance continued to proactively improve the protocol to enhance its functionality and user experience. Recently, the Lido Node Operator Sub-Governance Group (LNOSG) proposed a new process to add more participants to the Lido on Ethereum protocol.
The goals of this initiative were to diversify clients, reduce dependence on public cloud services, and increase the presence of Node Operators (NOs) outside of the United States and Europe. These measures aim to foster a more decentralized and globally inclusive network for staking ETH.
Lido on Ethereum Node Operator Onboarding ⚡️
Return applicant Ethereum NOs must apply by June 26th to be eligible for expedited evaluation ?️
For non-expedited evaluation, the onboarding process will remain open until July 13, 23:59 UTC.
? https://t.co/JxjHCnRlXF https://t.co/JsmTH7xdro
— Lido (@LidoFinance) June 21, 2023
What are whales up to?
While Lido’s progress is promising, certain whale behaviors have raised concerns within the market. Justin Sun, the founder of Tron, was reportedly withdrawing $25 million worth of stETH. This behaviour can cause temporary FUD and impact LDO’s price movements in the future.
Justin Sun just started the withdrawal process for his stETH
15804.72 stETH (~$25M), in the Lido withdrawal queue now pic.twitter.com/oSJWGAMiN2
— Martin Lee | Nansen ? (@themlpx) June 21, 2023
Realistic or not, here’s LDO’s market cap in BTC terms
At present, LDO was trading at $2.037, showcasing positive momentum over the last few days. The increasing number of LDO holders aligns with the price growth. Concurrently, the decline in whale supply suggests a shift in ownership dynamics, indicating rising interest from retail investors
Source: Santiment
