Lido Finance token climbs on Shanghai hard fork announcement

The governance token of the liquid staking platform Lido Finance (LDO) rose by 16.3% over the last 24 hours, according to CoinGecko.

At the time of writing, LDO was trading at $1.88. The weekly rise stood at 74.1%.

On January 5, Ethereum developers said that the Shanghai hard fork will be activated in the testnet in February, in the mainnet — in March. The update includes EIP-4895, which will allow ETH withdrawals from the Beacon Chain staking contract.

Lido Finance lets users earn from staking of tokens such as Ethereum, Polygon and Polkadot.

The most popular asset in the service is Ethereum. In exchange for coins locked in the Beacon Chain, users receive stETH tokens, which can be deployed in other DeFi protocols. Lido Finance is popular among retail investors who do not have enough funds (32 ETH) and the technical know-how to operate as a validator.

According to DefiLlama, at the time of writing, TVL in DeFi protocols stands at $40.97 billion. The leader is Lido Finance with $6.51 billion, second and third places are MakerDAO ($6.43 billion) and AAVE ($4 billion).

Against the backdrop of the announcement, the Rocket Pool protocol token (RPL) also rose noticeably — by 14.3% over the last 24 hours. At the time of writing, the asset was trading at $26.26.

In November 2022, the Ethereum team launched a devnet to test the withdrawal function by validators of cryptocurrency from the deposit contract.

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