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What Is Lido DAO Token (LDO)?

Intermediate
Altcoins
Crypto
web3
Jan 13, 2022
9 min read
0

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Introduction

The long-awaited upgrade to ETH 2.0 has solved many of Ethereum’s ongoing challenges. However, Eth2 is still in its early phase and grappling with a number of issues. For example, in order to become full validators, users need to stake multiples of 32 ETH. Moreover, any ETH that’s staked is locked, and can’t be used elsewhere within the duration specified.

Lido DAO aims to solve problems for Ethereum 2.0 through noncustodial staking. Since its launch in December 2020, the liquid staking solution has shown considerable potential. With its derivative token, stETH, Lido DAO allows ETH locked in the initial phase to be staked into other protocols. The Lido DAO network is dominating the ETH 2.0 staking market with over 80% in market share, and its native token, LDO, is performing well with constant ups (green candlesticks) on its chart. LDO has gone from its initial pricing of around $1.50 to its all-time high of $18.62, recording an increase of over 1,200% within a year.

Lido DAO (LDO) token performance. Source: CoinMarketCap

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