3 reasons why Lido DAO Token could be on the verge of breaking its downtrend
Ethereum (ETH) and decentralized finance (DeFi) are undergoing a seismic shift as the transition to Eth2 and a proof-of-stake consensus mechanism is helping to increase the value proposition for the network which has historically has been plagued with scaling issues and high transaction costs.
Alongside this transition has been the introduction of liquid staking, which is helping to add utility to DeFi and giving investors the option to do more with their assets than just lock them up indefinitely. Liquid staking could also help investors build more capital efficient portfolios.
One protocol that has benefited from the shift toward liquid staking is Lido (LDO), a platform that allows investors to earn staking rewards on their tokens while also enabling them to put the resulting LP tokens to work in a variety decentralized finance (DeFi) protocols.
Data from Cointelegraph Markets Pro and TradingView shows that the price of LDO has rallied 28% from a low of $1.27 on Feb. 21 to a daily high of $1.64 on Feb. 22.
Three reasons for the price reversal for LDO include the launch of support for Kusama (KSM) staking, an increase in the total value locked on the protocol and the rising popularity of liquid staking in the cryptocurrency market.
The most recent development to come from the Lido platform was the addition of support for Kusama liquid staking.
Lido for Kusama on Moonriver is here ️Stake your KSM with Lido for daily rewards and to put your staked assets to use across the Kusama DeFi space.Learn more here: https://t.co/BOqLg6oFAv
This integration was made possible through a developmental partnership with the Moonriver Network, a protocol that focuses on compatibility between Kusama and the Ethereum (ETH) network.
KSM
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