The largest Ethereum liquid staking provider Lido Finance’s LDO token has experienced a significant surge in recent hours. The LDO price increased by more than 22% after Coinbase CEO Brian Armstrong spread the word that the U.S. Securities and Exchange Commission plans to outlaw retail crypto-staking in the country.
The Lido Finance token (LDO), which was trading at $2.69 at the time of publication, has gained almost 10% during the previous 24 hours. The premise underlying the surge is that Armstrong’s tweet suggests that third-party decentralized staking service providers may profit from the anticipated US crypto staking prohibition.
According to Nansen’s statistics, 10% of all ETH is staked on Coinbase, 10% on Binance, and 9.2% on Kraken.
In this regard, it appears that investors are placing their bets on Lido Finance to be the largest winner when the SEC is expected to make a statement about it today, according to Bitcoinist.
Lido Finance’s Price Outlook for the Middle Term (LDO)
If the report turns out to be genuine, the LDO price has immediate room to rise higher. However, based on its fundamentals, LDO appears to be able to increase in value over the medium term as well.
The latest protocol version, V2, from Lido Finance was launched on February 7.
The next version of Lido Finance will accomplish the same thing and include other features such as allowing stakeholders to withdraw their tokens and earned prizes.
The upgrade also attempts to strengthen Lido system solo staker node operators for Ethereum. According to the statement, this will help “diversify” the validator choices even further. Due to its significant market dominance, Lido has historically been under fire for its lack of decentralization and suspected censorship.
As of publication, the LDO rally has been met with resistance at $2.83. If not, a correction to $2.40 may happen soon. But if the bulls win out, the next objective would be the $3.09 high from August 13.