Despite the obvious bearish trend, Lido has had considerable interactions from major addresses and validators on the Ethereum network, increasing its APR from 10% to 17.5%.
This is a result of the proposal from November 13th, which caused the rate of Lido-staked ETH (stETH) to rise.
On November 14, Wu Blockchain, a significant voice and participant in the cryptocurrency field, tweeted about this. He stated:
“Yesterday, the Lido 143 proposal increased the allowable APR reported by the oracle machine from 10% to 17.5%. It has been voted to pass, and the user staking reward update has resumed. On November 13, Lido stETH staking APR reached 10.2%.”
Recall that the great majority of liquid staking derivatives inside the Ethereum ecosystem are accounted for by Lido, a well-liked liquid staking solution on the Ethereum Network. Concerns about how its erratic growth patterns can affect Ethereum's decentralization have been growing.
While the worries are valid, as the network expands and more products like Lido hit the market, Ethereum staking should become more decentralized.
What Lido's Decision May Mean Going Forward for Ethereum
Investing in cryptocurrencies appears to be losing popularity, particularly for well-known coins like Ethereum whose switch from Proof-of-Work to Proof-of-Stake doesn't seem to be going well. However, the recent increase in Lido APR may serve as a catalyst for increased interest in ETH and stETH. Because any rational investor will aim for an APR of 17.5%.
Is There Truly a Significant Increase in the Volume of Ethereum Transactions?
A report graph from the on-chain intelligence market Glassnode revealed that the number of validators on the Ethereum network had increased significantly over the previous 30 days by 4.95%, with a profit of 34.56% to go along with this development.
Large investors who had at least 10 ETH on the Ethereum network weren't left out either; they experienced a significant uptick that drove Ethereum volume to an all-time high of $11,970 in five months.
The number of major addresses and validators increased, according to reports from Santiment, another on-chain information market, while the Ethereum rate fell. This might be caused by a reduction in transaction volume; even the Ethereum open-sea environment for NFTs saw a drop in trading activity.
Despite ETH's current spot trade price ($1,262) declining by 1.29% over the past 24 hours, there is great hope for another upswing.