ETH - Ahead of the Big Shanghai Upgrade Lido DAO Is Surging
One of the more volatile cryptocurrencies on investors' watchlists this year has to be Lido DAO (CRYPTO: LDO) . The LDO tokens ascribed to this liquid staking protocol for Ethereum (CRYPTO: ETH) have surged more than 140% on a year-to-date basis, driven in part by the highly anticipated upcoming Shanghai upgrade for the Ethereum network. This rally has also been helped by today's 15% 24-hour move as of 4 p.m. ET.
This move appears to be a recovery rally, following a decline of around 15% last week tied to concerns raised by Galaxy Digital around the upcoming proposal set to allow for withdrawals of Lido Staked Ether (CRYPTO: STETH) from the liquid staking protocol. These specific concerns relate to the potential for a mass-slash event, or other edge-case events that provide inherent risks tied to staking through an intermediary.
While these concerns are seemingly compelling based on last week's dip, the recovery seen in Lido this past week does suggest the market is brushing off these concerns as unlikely.
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Ahead of the Big Shanghai Upgrade, Lido DAO Is Surging