There has been news that KSM is getting support from the platform of liquid staking, and they are also partnering with Apricot Finance to build a solid market for SOL which affected the price of LIDO. There is evidence of seismic shifts in the DeFi and ETH due to the transition of Eth2. The value of said network has also increased owing to the proof-of-stake consensus mechanism, which has disrupted the scaling problem and the high cost of the transaction.
The idea of liquid staking helps DeFi by adding utility and gives the investors an option to utilize their property and get more effective capital portfolios rather than storing them forever. This protocol has helped LIDO, a platform that offers rewards to investors on tokens and allows them to keep the remaining LP tokens in other protocols of DeFi.
Reason For Such Price Reversal For Lido
The three main reasons for the increase in LIDO price are the news of the excellent reputation of the cryptocurrency market and liquid stacking, providing aid to KSM staking, and the rise in the value sealed on the protocol.
The holders of KSM are buying stakes from LIDO and getting 18% rewards at an APR and also have the opportunity to utilize their stKSM to collect further yields with the help of numerous DeFi platforms. As per reports of Defi Llama, the current value locked for LIDO is around $10.97 billion, which did not go down due to the association of new assets from KSM, SOL, LUNA, and Ether. The increased popularity of liquid staking helped the investors secure the network and derive more money by promising holdings as collateral in DeFi.
