Lido DAO price moves higher as the Ethereum Merge moves a step closer to completion
The upcoming Ethereum (ETH) Merge is one of the most talked about developments in the cryptocurrency ecosystem as the world’s second-largest cryptocurrency by market cap undergoes the difficult transition from proof-of-work (PoW) to proof-of-stake (PoS).
One protocol whose fate is largely tied to the successful completion of the Merge is Lido DAO (LDO), a liquid staking platform that allows users to tap into the value of their assets for use in decentralized finance and earn yield from staking.
Data from Cointelegraph Markets Pro and TradingView shows that since LDO hit a low of $0.42 on June 30, its price has climbed 107.6% to hit a daily high of $0.874 on July 9, but at the time of writing the altcoin has pulled back to $0.65.
Three reasons for the sharp turnaround for LDO include the successful Merge on the Sepolia testnet, the continued increase in Ether deposits on the platform and the slow recovery of staked Ether (stETH) price in comparison to Ether's spot price.
Migrating to proof-of-stake has been a challenging process, but it came one step closer to completion on July 6 with the successful Merge of the PoW and PoS chains on Ethereum’s Sepolia testnet.
BREAKING - Ethereum completes another successful test of The Merge on Sepolia Goerli next.Mainnet after. Don't sleep. pic.twitter.com/YeQfghmm5O
Following this development, there is only one more Merge trial to conduct on the Goerli testnet, and if that goes down without any major issues the Ethereum mainnet will be next.
Since Lido specializes in providing liquid staking services for Ethereum, each step closer to the full transition to PoS benefits the liquid staking platform because Ether holders who want a less complicated way to stake their tokens can utilize
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