Lido DAO price moves higher as the Ethereum Merge moves a step closer to completion

The three primary factors LDO has seen a sharp turnaround include the Merge on Sepolia, a boost in Ether deposits and the slow healing in staked Ether (stETH), rate relative to Ethers area.

TradingView and Cointelegraph Markets Pro data show that LDOs cost has actually increased 107.6% considering that June 30th, when it was at $0.42. It then reached $0.874 daily high up on July 9, but has been up to $0.65 as of this writing.

The upcoming Ethereum Merge (ETH) is among the most talked-about developments in cryptocurrency community. It marks the second-largest cryptocurrency market cap by market capital and undergoes the tough transition from proof-of work (PoW), to proof-of stake (PoS).

LDO/USDT 4-hour chart. TradingView

Lido DAO, a liquid staking platform that enables users access to their possessions and produce yield through staking, is one procedure whose fate is heavily tied to the completion of the Merge.

Sepolia testnet merger

Although it was tough to migrate to proof-ofstake, it became simpler with the Merge of the PoW- and PoS-chains on Ethereums Sepolia testnet.

Lido is a specialist in liquid staking for Ethereum. Each step closer to PoS suggests that liquid staking platforms are able to gain from each Ether holder who desires an easier way to stake their tokens.

This advancement suggests that there is one more Merge test to be performed on the Goerli testingnet. If it goes down without major problems, the Ethereum mainnet will follow.

BREAKING NEWS: Ethereum passes another effective test of The Merge with Sepolia Goerli. Mainnet after. Dont sleep. pic.twitter.com/YeQfghmm5O
— bankless.eth July 6, 2022 (@BanklessHQ).

The need for ether continues to grow

Dune Analytics information, which shows an increase in Ether deposits on the procedure, is proof that interest in Lido staking has actually continued to grow.

The chart reveals that as of July 7, there were 4.128 million Ether staked through Lido.

Data. Source: Lido DAO

Ether staked in Lido. Source: Dune Analytics

Related: Ethereum testnet Merge most successful– Hiccups will not delay the Merge.

stETH begins to recover

LDOs value has also been boosted by the healing in stETH costs, which have actually lost their peg to Ether in the last few months due to distressed funds selling their stETH to prevent insolvency.

Dune Analytics information reveals that the rate for stETH now trades at around 97.2% of Ethers rate, an increase of 93.6% given that June 18.

Although stETH is still not at par with Ether in price, the move in the best direction and less selling pressure due to forced liquidations appear to have actually restored some financier faith in the token.

Chart of ETH: stETH rates for 1 hour. Source: Dune Analytics

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LDO has had the ability to benefit from this, since it is the largest liquid Ether staking company and provider stETH.