The price of Lido DAO (LDO) experienced a sharp increase of over 11%, temporarily reaching $1.03. This spike is attributed to recent news regarding BlackRock.
Reasons for LDO Price Rise
The sudden surge in LDO's price is considered a reaction to BlackRock's plans to implement staking capabilities in its Ethereum ETF fund. This move has heightened interest in the token, as evidenced by its rapid appreciation.
What is Lido DAO?
Lido DAO operates as a liquid staking derivative provider for Ethereum. Users lock up their ETH with Lido DAO, taking on a certain amount of risk, and in return receive a token called stETH, which is considered equivalent to ETH. This allows users to both lock their tokens and still utilize their ETH on various decentralized finance platforms.
BlackRock's Ethereum Plans
BlackRock, the world's largest asset manager, plans to add staking capabilities to its iShares Ethereum Trust (ETHA), which offers investments in Ethereum. An updated 19b-4 filing with the SEC highlights this move, which may enable the fund to not only benefit from ETH price fluctuations but also participate in Ethereum's proof-of-stake consensus system through trusted third parties.
The rise in Lido DAO's price and BlackRock's plans to introduce staking features in its Ethereum ETF highlight the growing interest in decentralized finance and new investment opportunities in cryptocurrency.
