Lido Witnessing Huge stETH Withdrawal Since Upgrading To V2
- After the successful testing of the V2 functionality, Lido users have begun to increase their withdrawal requests.
- Celsius began taking ETH valued at hundreds of millions of dollars from the platform.
- This sum is projected to rise dramatically, particularly after major organizations invested in Lido begin processing withdrawals.
After the successful completion of its V2 update, liquid staking protocol Lido (LDO) expects big staked Ethereum (stETH) withdrawals from its customers this week.
The Dune Analytics dashboard revealed 130 withdrawal requests totaling 441,887 stETH. This sum is projected to rise dramatically, particularly after major organizations invested in Lido begin processing withdrawals.
According to a separate Dune Analytics dashboard, the protocols successfully handled 19 withdrawals totaling 339 ETH.
Celsius has also begun removing ETH worth hundreds of millions of dollars from Lido Finance.
The revelations occurred only hours after the insolvent company transferred approximately $800 million in stETH and after the platform upgraded to facilitate such transfers. Celsius will get the underlying ETH in return for the stETH tokens once the funds are withdrawn.
According to blockchain statistics, Celsius has launched withdrawal requests for 240,000 stETH. Nevertheless, the corporation has not made any significant withdrawal demands from Lido.
Lido is mainly a platform for Ethereum liquid staking. It allows users to pool their assets to become Ethereum validators, avoiding the network’s requirement of depositing at least 32 ETH.
In April, Ethereum launched Shapella, a network improvement that allows for reward withdrawals from its staking contract. As a consequence, the PoS contract saw days when ETH withdrawals outpaced deposits.
The Ethereum PoS contract has over 20 million ETH as of May 16, highlighting the rising need for liquid staking service providers like Lido. The story most certainly boosted the price of its governance token, LDO.
In the days running up to the Lido v2 launch, its whales have also backed LDO’s upward trend. According to the data site Lookonchain, this might imply that the “buy the rumor” scenario led to the LDO price surge.
With redemptions now open, numerous experts believe the lender will be able to swap its stETH for ETH and utilize it to fund its restructuring strategy.
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