After staking ban rumors surfaced, the LDO token deviated from the general cryptocurrency market trend.
As exchange inflow soared, few investors had LDO in non-custodial wallets.
After Coinbase CEO Brian Armstrong sounded the alarm about a potential crypto staking prohibition, the Lido Finance [LDO] price surged in contrast to the general market attitude.
To win, complete decentralization must be achieved?
Staking on Ethereum [ETH] is different from staking on Lido Finance since the latter’s staking process is decentralized. On the other side, regulators must keep an eye on Ethereum.
The Lido share per staked Ether [stETH] did not considerably rise even though the LDO price climbed. At the time of publication, the LDO share was down to 29, according to Dune Analytics.
However, there was a steady rise in the overall amount of LDO placed into the pool.
This implies that the likelihood of more people becoming Ethereum validators and generating a return has grown. In addition, Lido Finance may have attracted more attention due to its maintenance of the DeFi Total Value (TVL) locked top place and the current development.
The TVL aggregator DeFiLlama revealed that Lido Finance’s TVL was $8.47 billion. The TVL, although remaining above former leader MakerDAO [MKR], has dropped by 2.10% during the previous 24 hours.
nonetheless, self-custody cheer
Charles Hoskinson, the founder of Cardano [ADA], however, commented on the staking prohibition story. Armstrong’s post prompted Hoskison to mobilize support for non-custodial staking.
Giving someone temporary access to your assets in exchange for a return has a lot in common with regulated goods.
Despite the call, Santiment’s on-chain analytics revealed that the LDO supply outside of exchanges wasn’t all that promising. It was down to 933.41 million as of the time of publication and has been declining since January.
The exchange inflow, however, dramatically jumped to 2.42 million.
But this can be due to the current LDO spike and the 38.68% rise over the previous 30 days. As a result, there can be instances of short-term selling pressure.