key takeaways
- Lido Finance saw its largest daily ETH stake inflow ever on Saturday.
- A wallet belonging to Justin Sun reportedly staked 150,100 ETH through the protocol.
- Ethereum is set to allow withdrawals of ETH staked sometime in March.
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Last week, Ethereum saw its third largest ETH inflows staked in history, suggesting that investors anticipate withdrawals to be enabled soon.
More than 400,000 ETH staked
Investors are positioning for Ethereum’s impending Shanghai upgrade.
Lido Finance decentralized liquid staking protocol Announced on Saturday that it had recorded its largest daily staking income 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 entry (starting with 0x176f3) has been associated with Tron founder Justin Sun since April 2022. Crypto Briefing could not independently confirm the identity of the wallet owner. However, on-chain data indicates the wallet currently contains more than $420 million worth of crypto assets, including 200,164 ETH ($328 million) staked through Lido.
According to Dune data analyst hildobby, the inflow helped boost weekly ETH inflows staked to over 400,000 ETH. Ethereum staking inflows have only exceeded this volume twice in the past: in November 2020 and March 2022.
Lido revealed that the input had triggered a security feature of the protocol called Stake Rate Limiting, which it described as a “dynamic mechanism to respond to large stake inputs and address possible side effects such as reward dilution, without the need to explicitly pause.” participation deposits.
Ethereum moved from a Proof-of-Work to a Proof-of-Stake consensus model in September 2022, shifting block production tasks from miners (who require computational power to create new blocks) to validators (who only they require 32 ETH “network participation”. For development reasons, staked ETH is currently locked in the network. The next Ethereum update in Shanghai, scheduled for March, is set to allow withdrawals of staked ETH.
Disclaimer: At the time of writing, the author of this article owned BTC, ETH, and various other crypto assets.
