Lido has launched an upgrade to improve the protocol. The improvements improved the performance of the LDO token.
Lido [LDO], a protocol in the DeFi ecosystem, has seen significant improvements over the past week. Notably, the protocol took advantage of press time growth by upgrading its technology.
Today, Lido Contributors are proud to present Lido V2 – Lido’s biggest upgrade to date and a major step towards further decentralization. https://t.co/SDxlxCgMNq pic.twitter.com/KJewhEp8rV
— Lido (@LidoFinance) February 7, 2023
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The first upgrade, the Staking Router, will be a platform for collaboration between strikers, developers and node operators. In addition, it provides the infrastructure for strikers to easily navigate the staking landscape.
The second upgrade relates to withdrawals and enables Staked Ethereum [stETH] holders to withdraw their tokens from the Lido ecosystem at a 1:1 ratio, with no additional fees or penalties.
Decentralization continues
Without Lido, the Ethereum [ETH] ecosystem would become highly centralized as major exchanges such as Coinbase, Kraken, and Binance would dominate the network.
However, with Lido’s recent upgrades, the ecosystem has become more decentralized. This has brought a new level of security and stability to the network. The announcement is expected to have had a positive effect on the LDO token, increasing both daily active addresses and speed.
Source: lido
A spike in velocity suggested that the frequency with which LDO was transferred has increased, and the growing MVRV ratio suggests that if a majority of holders sold, they would eventually turn a profit.
The positive Long/Short difference implied that it is mainly long-term holders who are currently profitable. These long-term holders were less likely to sell and make a profit.
Source: Sentiment
Traders are getting pessimistic
However, despite these positive developments, the number of short positions against Lido increased, indicating that some traders were pessimistic about LDO’s growth. According to Coinglass, the percentage of short positions against LDO has risen to 52.35%.
How much is 1,10,100 LDO worth today?
Source: mint glass
It remains to be seen if the traders turn out to be right about the future of LDO.
Nevertheless, Lido’s commitment to its growth and dominance in the DeFi ecosystem shows that the protocol is confident in its ability to continue its upward trajectory. As the DeFi ecosystem continues to evolve, Lido will be a key player as it will provide the infrastructure for stakers, developers and node operators.
This post Lido solidifies mastery in DeFi landscape after major upgrade: details within
was published first on https://ambcrypto.com/lido-solidifies-mastery-in-defi-landscape-after-major-upgrade-details-inside/
