Lido Staked Ethereum Withdrawals Stressed Crypto Market, LDO Price Jumps 10%

The largest Ethereum staking protocol Lido enabled staked Ethereum withdrawals as the Lido V2 upgrade officially went live on the Ethereum mainnet late Monday. Lido V2 upgrade primarily improves the Ethereum staking experience while increasing decentralization and unstake stETH to withdraw Ethereum (ETH) at a 1:1 ratio.

Users can unstake their stETH or wstETH through withdrawals on Lido directly without any fee. After unstaking stETH, they will receive ETH at a 1:1 ratio. The withdrawal process will take 1 to 5 days under normal circumstances. Currently, the waiting time is 1 to 2 days.

Staked Ethereum Withdrawals from Lido

After the Ethereum Shanghai mainnet upgrade on April 12, Lido didn’t enable withdrawals as it was undergoing audits. Lido said it will enable Ethereum withdrawals by May end.

Data from Parsec, the average ETH withdrawal from Lido was 200 ETH in the early hours of enabling withdrawals. On Tuesday, Ethereum withdrawals jumped significantly higher and recorded 3400 ETH worth over $6 million in just an hour during Asia’s morning hours.

Beleaguered crypto firms such as Three Arrows Capital (3AC) and Celsius may withdraw large amounts of ETH from Lido, with 3AC mostly becoming one of the larger stakers of Ethereum before collapsing in 2022. in fact, Celsius moved 428,000 stETH before the Lido enabled withdrawals.

According to DeFiLlama data, Lido has 6,707,103 staked ETH, with a total market share of 74.49% in liquid staking derivatives. The total value locked (TVL) has doubled from $6 billion in December to $12 billion in May.

Also Read: US DOJ To Intensify Crackdown Against Crypto Exchange, DeFi, Mixers

Lido DAO (LDO)Token Price Rally

The ETH withdrawals on Lido caused a little stress in the crypto market as Bitcoin and Ethereum price gave recent gains. BTC price is currently trading at $27195, down 1% in the past 24 hours, while ETH price trades above $1800.

Meanwhile, Lido DAO (LDO) price skyrocketed 10% in the last 24 hours and 40%% in a week. LDO price hit a 24-hour high of $2.19.

Also Read: Bitcoin (BTC) Price At “Inflection Point”, Big Move Happening In Cardano (ADA)

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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