Since its launch, Lido Finance, an Ethereum-based protocol allowing users to pool their assets to become Ethereum validators, has been garnering a lot of attention. This is particularly due to recent news of redemption requests from the platform to the tune of 441,887 stETH- a considerable sum, attributed to large organizations that had invested in Lido, in addition to the more recent requests of 339 ETH from 19 withdrawals. To facilitate this, Lido had upgraded their platform to V2, and following this large-scale token redemption, Celsius was expected to receive the underlying ETH in return.

Celsius proceeded to undertake the task of withdrawing ETH worth hundreds of millions of dollars from the Lido platform, however, no significant withdrawal requests have been made from Lido yet. Dune Analytics’s separate dashboard has also highlighted the rising demand for liquid staking with the Ethereum Proof-of-Stake (PoS) contract holding over 20 million ETH as of May 16, further indicating the need of similar services like Lido.

The surge in Lido’s token price (LDO) has been attributed to its whales backing the trends up prior to the launch V2. This mirrors the “buy the rumor” market trend as per the Lookonchain data site.

Finally, the takeover of redemptions creates an opportunity for stakeholders to acquire the original ETH deposited in exchange for their stETH tokens. This ETH was the foundation of the restructuring plan developed by Lido, and its successful implementation depends upon a successful completion of the stETH redemption process.



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