24/7 Cryptocurrency News

Lido Staked ETH (stETH) Close To Ethereum Price, Why It’s Good For Crypto

Published by
Lido Staked ETH (stETH) Close To Ethereum Price, Why It’s Good For Crypto

Lido Staked Ethereum (stETH) slowly repegs with Ethereum (ETH) as total staking assets rose on DeFi liquidity giant Lido. stETH-ETH peg has improved to 0.9778 with the stETH price trading closer to Ethereum (ETH) price at $1073 and $1100, respectively.

Moreover, Lido’s native token LDO has jumped by more than 25% in the last 24 hours, making a high of $0.66. Despite losing some gains, the token is moving strongly with trading volume bouncing over 150%.

Advertisement

What Lido Staked Ethereum (stETH) Peg to Ethereum (ETH) Means for the Crypto Market

The Lido’s staked Ethereum depeg last month caused massive selloffs in cryptocurrencies causing the market to crash. With the stETH-ETH peg improving further, the possibility of market recovery seems in sight.

Moreover, the ongoing liquidity crisis could disappear, with market liquidation risks reducing significantly amid the increase in value of staked Ethereum. In fact, the higher the stETH-ETH price deviation, the higher will be the risk of liquidation of firms.

The massive selloff of stETH in the secondary market by Alameda, Three Arrows Capital, and Celsius last month caused a rise in insolvency risks. This forced many crypto firms including Celsius to pause withdrawals on their platforms. According to a Nansen report, Celsius has staked customer funds on Lido and currently holds at least $449 million worth of stETH in a public wallet.

In an Unchained Podcast on July 5, Lido’s strategic advisor Hasu and Gauntlet’s founder Tarun Chitra revealed that Three Arrows Capital has liquidated its stETH holdings, but Celsius do hold plenty of stETH locked up as collateral.

With Celsius looking for solutions to prevent bankruptcy, improving value of collateralized stETH may help ease some pressure. In fact, Celsius is actively paying off the outstanding debt currently.

Moreover, the Ethereum Merge will not immediately affect the liquidity of stETH as it will still be locked up for like eight or nine months after the Merge.

Advertisement

Lido’s Dominance in Ethereum Staking

Lido is Ethereum’s fourth-largest DeFi protocol with a total value locked (TVL) of $4.79 billion. Also, ETH staked on Lido accounts for 31.76%, as per Dune Analytics. Many Ethereum developers including Vitalik Buterin have questioned Lido’s Ethereum staking dominance. However, the Lido community has voted to against a proposal to self-limit Ethereum staking on the platform.

Advertisement

Share
Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Polymarket Founder Shayne Coplan Teases Potential POLY Token After $2B ICE Deal

Polymarket founder Shayne Coplan has sparked speculation about a potential native token launch following a…

October 9, 2025
  • Bitcoin News

FOMC Minutes Signal Fed Open to More Rate Cuts This Year, Bitcoin Bounces

The FOMC minutes have signaled a dovish shift from the Fed officials, who look likely…

October 9, 2025
  • 24/7 Cryptocurrency News

North Dakota To Issue ‘Roughrider’ Stablecoin Following Wyoming’s Footsteps

North Dakota is set to become the second U.S. state to issue a stablecoin, named…

October 8, 2025
  • 24/7 Cryptocurrency News

Ethena Labs and Jupiter Partner to Launch JupUSD Stablecoin on Solana

Ethena Labs reported that it has partnered with Jupiter Exchange to develop JupUSD. This is…

October 8, 2025
  • 24/7 Cryptocurrency News

BlackRock’s Bitcoin ETF Leads ETFs With $3.5B Weekly Inflows as It Eyes $100B in AUM

BlackRock’s Bitcoin ETF, the iShares Bitcoin Trust (IBIT), has become the most bought exchange-traded fund…

October 8, 2025
  • 24/7 Cryptocurrency News

MetaMask Launches Hyperliquid Perpetuals In-App, Plans To Integrate Polymarket

MetaMask has officially introduced perpetuals trading on its platform, powered by Hyperliquid. Meanwhile, the crypto…

October 8, 2025