Kategorie: Ethereum News

Ethereum news about the ETH blockchain and its crypto ecosystem.

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Lido Finance triggers “staking rate limit” after 150K+ ETH gets staked in a day

  • The highly anticipated Ethereum Shanghai upgrade is only days away now.
  • The Shanghai upgrade is causing a lot of activity on Lido finance.
  • The “staking rate limit” was activated after the daily staking limit of 150,000 Ether was reached.

As reported in our earlier news, the Lido Finance protocol is witnessing a surge in activity amid the upcoming Ethereum Shanghai/Capella upgrade. The rise in activity mainly attributed to increasing ETH staking has consequently caused the price of Lido Dao (LDO), the native token of Lido Finance, to hike considerably over the past few days.

At press time, LDO was trading at around $3.09, up 4.09% in the past 24 hours.

“Staking Rate Limit” activation

Lido Finance had to activate its “Staking Rate Limit” safety feature after over 150,000 ETH tokens were staked in a single day on February 25. According to a tweet by Lido:

“Lido protocol has registered its largest daily stake inflow so far with over 150,000 ETH staked.  Upon reaching this number, a curious (but important) protocol safety feature called Staking Rate Limit was activated.”

Lookonchain, a keen on-chain analyst, shared a screenshot that showed that the 150,100 ETH could have been made by a single user, with three deposits of 50,000 ETH each, and one of 100 ETH.

As a liquid staking protocol, Lido Finance allows users to stake Ether (ETH) without needing to lock their tokens, as with most crypto staking platforms. When a user deposits ETH on Lido, he/she is issued with a liquid variant of the deposited ETH, called staked ETH (stETH). The stETH entitled the users to daily staking rewards.

How the rate limit will work

In a guide, Lido Finance stated that the “Staking Rate Limit” acts as a “safety valve” and it aims at limiting the amount of stETH that can be minted during high inflow times so as to mitigate ill side effects like rewards dilution.

In the guide, Liod states that the “Staking Rate Limit”:

“Works by decreasing how much total stETH can be minted at any one time based on recent deposits, and then replenishing this capacity on a block-by-block basis.”

The replenishing capacity is capped at the rate of 6,200 Ethereum ETH per hour.

More than $9.162 billion ETH has been staked with Lido Finance as of February 27, according to the protocol’s website. The amount of staked ETH on the protocol has increased by almost $4 billion since the beginning of the year.

The post Lido Finance triggers “staking rate limit” after 150K+ ETH gets staked in a day appeared first on CoinJournal.

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Lido Dao price up 13% as staking flows rise ahead of Shanghai

  • Lido Dao (LDO) price was up more than 13% in the past 24 hours on Sunday at 3:30 pm ET.
  • LDO is gaining momentum after recovering from lows of $2.72 amid improved sentiment around the upcoming Ethereum upgrade Shanghai.
  • LDO could see a strong move upward amid gains for liquid staking solutions.

Lido Dao price has increased by 13% in the past 24 hours to recover losses recently suffered following negative market reaction to hotter-than-expected US Personal Consumption Expenditures (PCE) index.

But after cryptocurrencies more than held at major support levels following the dump on news of the Fed’s preferred inflation tool, Lidao Dao native token LDO is taking the lead among liquid staking tokens.

LDO price jumps to 6-month high amid LSD positivity

On Sunday afternoon, the Lido Dao token rose to $3.16 from 24-hour lows of $2.72, its highest price since August 2022.

The token enjoyed the gains as Bitcoin recovered above $23k amid fresh strengthening at this the key support level. But Lido’s double digit gains were the biggest amongst the top 30 cryptocurrencies by market cap.

Even as the rates environment remains a sticking point for bulls across equities and crypto, LDO and other Liquid Staking Derivatives (LSDs) are likely to ride a major upcoming crypto event. This is because the highly anticipated Ethereum Shanghai upgrade is only days away now.

Also likely to help LDO is the US Securities and Exchanges Commission (SEC)’s recent crackdown on centralised staking services. While regulatory uncertainty remains a big issue for all of crypto, moves against CeFi players could also nonetheless prove beneficial to decentralised staking solutions. Lido Finance knows this.

Indeed, Lido just saw its largest daily inflow of staked Ether (ETH), according to on-chain details shared by Web3-focused research group Cryptomium.

Pseudonymous crypto trader and analyst Pentoshi says that LDO is likely to have a strong move as LSDs pick up momentum going into the upgrade.

With prices above $3 now, sustained upside momentum could see bulls target $4.00 and then $5.00 in March as Ethereum holders begin to access withdrawals of the staked ETH.

The post Lido Dao price up 13% as staking flows rise ahead of Shanghai appeared first on CoinJournal.

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BTC and ETH hold onto support as VC exec maintains bullish prediction

  • Chris Burniske says Ethereum could outperform Bitcoin in March due to the Shanghai upgrade.
  • Burniske is a partner at crypto-focused VC Placeholder and formerly of ARK Invest (crypto division).
  • According to the investor, pullbacks are likely to remain “within current uptrend.”

Chris Burniske, partner at venture capital firm Placeholder and former head of crypto ARK Invest, is bullish on crypto going into March.

The investor believes the recent flip in sentiment has not resulted in deeper rot for major cryptocurrencies, despite the weakness seen across stocks amid investor anxiety over interest rates.

In a tweet posted this weekend, Burniske said the outlook is mostly bullish as recent pullbacks have been largely mild.

“From where I sit, I’m surprised crypto hasn’t pulled back more given weakness in equities and upward repricing in rates — bullish,” he noted.

Ex-ARK Invest head of crypto shares Ethereum and Bitcoin price predictions

Bitcoin and Ethereum have both retreated from year-to-date highs, from above $25k and $1.7k respectively. 

As noted above, the leading digital assets by market capitalization have given up the recent gains amid continued jitters over US inflation data. Buy-side volume has also tanked on shifting sentiment around the regulatory environment in the United States returned sell-off pressure across the markets.  

But while Bitcoin has retraced to support around $23,000 and Ethereum continues to hover around $1,600, the crypto bull says any further losses in the short term are likely to be “within the current uptrend.”

“To those saying some version of “just wait,” sure we could pull back a bit more, but calls for new lows anytime soon are silly. Pullbacks are consolidation within the current uptrend, imo,” the investor added.

In terms of price prediction for the top two coins, Burniske thinks Ethereum will outperform Bitcoin in March. According to him, ETH is likely to gain fresh momentum from the highly anticipated Shanghai upgrade, which is expected to drive staking flows. 

The outlook is supported by on-chain data, which shows new value sent to the ETH 2.0 deposit contract continues to rise. 

Crypto analytics firm Santiment recently shared a chart showing that the number of newly staked coins rose a 5-month high count earlier this week.

The post BTC and ETH hold onto support as VC exec maintains bullish prediction appeared first on CoinJournal.

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Ethereum’s Shanghai/Capella network upgrade is slated for Feb. 28

  • Ethereum plans to deploy the Shanghai/Capella upgrade on Sepolia testnet
  • The update is scheduled to test staked ETH withdrawals.
  • The Shanghai-Capella was earlier tested on the Zhejiang testnet but developers discovered minor bugs.

Ethereum developers have announced that they have scheduled a test run of the Shanghai/Capella (Shapella) upgrade for February 28. The test run is planned to go live on Sepolia testnet to test staked ETH withdrawals on Ethereum’s proof-of-stake blockchain.

The test on Sepolia will bring the Ethereum chain closer to the ability to withdraw the staked ETH tokens from the Beacon Chain. According to the communication from Ethereum, “The Shapella upgrade combines changes to the execution layer (Shanghai), consensus layer (Capella) and the Engine API.”

Shanghai upgrade

The upgrades on Shanghai will introduce Warm COINBASE, PUSH0 instruction, Limit and meter initcode, Beacon chain push withdrawals as operations, and Deprecate SELFDESTRUCT.

The changes can be viewed in the new Python reference implementation for the execution layer, Ethereum Execution Layer Specification (EELS).

Capella upgrade

The Capella upgrades will introduce full and partial withdrawals for validators, BLSToExecutionChange messages, which allow validators using a BLS_WITHDRAWAL_PREFIX to update it to an ETH1_ADDRESS_WITHDRAWAL_PREFIX, a prerequisite for withdrawals, and independent state and block historical accumulators to replace the original singular historical roots.

Unlocking the over 16 million staked ETH

Ethereum validators are eagerly waiting for the unlocking of the more than 16 million ETH tokens that are currently staked on the Beacon Chain smart contract which opened in 2020.

While the validators await their assets to be unlocked, the majority of the other crypto investors are waiting to see how the Ethereum price will respond to the whole process. A wider majority believe that the staked ETH withdrawals may attract more institutional interest and also trigger an ETH price surge.

The post Ethereum’s Shanghai/Capella network upgrade is slated for Feb. 28 appeared first on CoinJournal.

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Ethereum price sits at key level as shorts liquidations rise

  • Ethereum joined the broader cryptocurrencies rally on Friday.

  • More short-sellers continued to liquidate their positions.

Ethereum (ETH/USD) price joined Bitcoin in its remarkable comeback on Thursday. It rose to a high of $1,696, which was close to the highest level since September 2022. ETH has jumped by over 56% from the lowest point in 2022. 

Shorts liquidations

Ethereum and Bitcoin prices jumped because of increased liquidations by short-sellers. Data compiled by CoinGlass showed that BTC shorts liquidations jumped to over $140 million on Wednesday. This compared with bulls liquidations of less than $20 million. 

The same is true with Ethereum, whose short liquidations rose to $42 million. Most of thos liquidations came from OKX followed by Binance and Huobi. Longs liquidations came in at just $3.64 million. In most periods, Ethereum tends to rise when short-sellers liquidate their trades. 

Ethereum price also rose because of the likely possibility that Binance will settle with the Securities and Exchange Commission (SEC), This view was shared by the company’s chief strategy officer who talked with the Wall Street Journal (WSJ). 

A settlement would be a good thing for both Binance and the crypto industry because it will end one of the biggest clouds hanging in the sector.

Meanwhile, risky companies in the US have started to do well, which is a sign that retail traders are back. On Monday, QuantScape, Upstart, Roblox, and Wish jumped by more than 20%.

Still, the biggest risk for Ethereum is monetary policy and regulations. Data published this week showed that America’s inflation remained high in January while retail sales jumped. As such, these numbers could fuel a new wave of a hawkish Federal Reserve. 

Ethereum price prediction

ETHUSD chart by TradingView

On the daily chart, we see tha the ETH/USD price has been in a consolidation phase in the past few weeks. In this period, it has remained between $1,665 and $1,462. This was a notable range since it was the highest point in November last year. Now, it seems like Ethereum is attempting to move above this level of resistance.

Ethereum has moved above the 50-day moving average. Therefore, there is a likelihood that the stock will have a bullish breakout. If this happens, the next key level to watch will be at $1,795 (September 12 high). Flipping this resistance into support could move to the key resistance at $2,027 (August 14 high).

However, a drop below the support level at $1,468 will invalidate the bullish view. It will signal that there are more sellers in the market. 

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The post Ethereum price sits at key level as shorts liquidations rise appeared first on CoinJournal.