- Lido Finance Records its largest daily inflow of ETH holdings.
- LDO is currently suffering from buyer exhaustion.
On a tweet Published on Feb 25, Lido Finance (LDO), the leading liquid Ethereum (ETH) betting platform, confirmed that it recorded its highest daily stake flow with over 150,000 ETH staked.
The Lido protocol recorded its highest daily flow of participation so far, with over 150,000 ETH staked. 🎉
Upon reaching this number, a curious (but important) security feature of the protocol called Staking Rate Limit was activated.
See how it works 🧵👇 pic.twitter.com/ngBtWz7q18
— Lido (@LidoFinance) February 25, 2023
On-chain analytics platform Lookonchain found that the said 150,000 ether tokens were staked by Tron founder Justin Sun.
In the early hours of February 26, Sun staked an additional 10,000 ETH, bringing his total ETH portfolio to 200,100 ETH, worth around $320 million.
Justin Sun bet 10,000 $ ETH($16 million) in @LidoFinance again now.
He currently bet 200,100 $ ETH ($320 million).
And he received income of 18.68$ ETH in 24 hours, APY is ~3.6%.https://t.co/oZxE8KpjHy pic.twitter.com/OSFlkIUOGM
— Lookonchain (@lookonchain) February 26, 2023
According to Lido Finance, the increase in ETH staked in a one-day trade led to the activation of the protocol’s security feature known as the Staking Rate Limit.
O Bet rate limit is employed in Lido as a dynamic mechanism to ensure protocol security and to avoid reward dilution caused by large share inflows.
Based on recent deposits, this mechanism decreases the total amount of stETH that can be minted at any given time using a 24-hour sliding window.
Is your portfolio green? Check out the LDO Profit Calculator
Protocol capacity is replenished block by block, with a recovery rate of around 6,200 ETH per hour. The limit applies to all parties attempting to mint stETH, regardless of the method employed.
State of ETH Betting on Lido
According to data from Dune Analytics, 5.35 million ETH tokens were staked through Lido Finance, bringing its share of the ETH betting market to 29%.
With the Shanghai upgrade scheduled to take place in a few weeks, recent months have seen an increase in the creation of new liquid ETH staking protocols, leading to a gradual drop in Lido’s market share.
For context, Lido Finance held 32% of all ETH wagered in May 2022. However, with centralized betting platforms such as Coinbase offering higher annual percentage rates (APR) to liquidity providers, these platforms have witnessed a increase in ETH stakes.
As for the APR bet on the Lido, it was set at 4.74% at the time of this publication. It peaked at 10.20% last November and has been on a downward trend ever since.
Source: Dune Analytics
How much are 1,10,100 LDOs worth today?
LDO in the last 24 hours
At press time, LDO has changed hands at $3, with its price rising 10% in the last 24 hours. However, while the price of LDO rose, the volume traded fell by 19% during the same period, according to data from CoinMarketCap.
This type of price/volume divergence is common in a market where buyers are in the process of exhaustion. This suggests that a possible reversal in the LDO price is imminent if the necessary liquidity to push its price higher does not enter the market.