Key points to remember
- Lido Finance saw its largest daily influx of ETH holdings in history on Saturday.
- A wallet believed to belong to Justin Sun has staked 150,100 ETH through the protocol.
- Ethereum is expected to allow ETH withdrawals staked in March.
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Last week, Ethereum saw its third-staged ETH inflows in history, suggesting that investors expect withdrawals to be activated soon.
Over 400,000 ETH staked
Investors are positioning themselves for the impending Ethereum upgrade in Shanghai.
Lido Finance Decentralized Liquid Staking Protocol announcement Saturday that it had recorded its largest daily influx of stakes to date, with 150,100 ETH (worth around $247 million at the time of writing) staked at once.
The address of the Ethereum wallet responsible for the influx (which begins with 0x176f3) has been associated with Tron founder Justin Sun since April 2022. Crypto Briefing was unable to independently confirm the identity of the owner of the wallet. However, string data noted the wallet currently holds over $420 million in crypto assets, including 200,164 ETH ($328 million) staked through Lido.
According to data analyst Dune hildobby, the influx helped push weekly inflows of ETH staked to over 400,000 ETH. Ethereum staking entries have exceeded this volume only twice in the past: in November 2020 and March 2022.
Lido revealed that the influx triggered a protocol security feature called Staking Rate Limit, which it described as a “dynamic mechanism to respond to large influxes of stakes and address possible side effects such as reward dilution, without need to explicitly suspend participation deposits.”
Ethereum moved from a proof-of-work consensus model to a proof-of-stake model in September 2022, which shifted block production tasks from miners (which require computing power to create new blocks) to validators (which only require a 32 ETH “stake” in the network). allow staked ETH withdrawals.
Disclaimer: At the time of writing this article, the author of this article owned BTC, ETH, and several other crypto assets.