Claim $500Why Lido DAO Will Benefit Most From Crypto Staking Regulation?
Lido DAO News: With the recent regulatory restrictions on crypto staking on exchanges, the upcoming Ethereum Shanghai upgrade could potentially bring in sweeping changes in the staking ecosystem. While it is argued that unstaking of ETH would bring down Ethereum price, it can also be argued that many stakers could chose to restake for more returns. Hence, after the ETH is unstaked from Kraken, there could be a diversion of assets to Lido DAO.
Also Read: A Close Call For Judge in US SEC Vs Ripple; XRP Lawyer Suggests
Lido Vs Coinbase
Kraken is the third largest staking pool next to Lido and Coinbase. Interestingly, Lido is also the largest liquid staking protocol, meaning that due to its decentralized nature, it could be tricky for regulators to crackdown on its operations. As per on-chain data, Kraken’s Ethereum staking pool comprises around 7.42% of the total ETH staked across platforms. Whereas Lido is first at 29% followed by Coinbase at 12%.
There could be a huge shift in these numbers in favor of Lido, following the Shanghai upgrade, when the Kraken’s pool would be unstaked. Even Coinbase, a centralized exchange, might not be trusted by all traders after the SEC settlement with Kraken. It was the Coinbase CEO Brian Armstrong who first warned that the SEC could possibly place a blanket ban on staking. Hence, Lido stands more likely to benefit from the whole situation after the upcoming Ethereum upgrade.
Also Read: Big Reason To Worry For The Terra Luna Classic (LUNC) Community
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