‘Fully Trustless Protocol’: Lido Shares Update On Withdrawal Key Rotation

  • No significant increase in LDO’s token value despite significant development.
  • Lido updated on the unlocking and withdrawal process for staked ETH and resolved eight issues.

The most recent announcement from Lido addressed the platform’s move towards decentralization and self-custody, which was a response to previous concerns about its centralization. The update explained the steps that Lido must take in order to become a fully trustless protocol, with withdrawal key rotation being the initial step.

The update provides a breakdown of each step and its significance for the protocol’s trajectory. Despite this significant development, there doesn’t seem to be a notable increase in the token’s value.

The recent update from Lido included information about the unlocking and withdrawal process for ETH staked prior to July 2021. The update outlined the steps that will be taken to ensure that the process is seamless.

Supply in Smart Contracts vs Transfer Rate

Additionally, the update stated that eight issues had been resolved, and there were no significant problems to report. Lido also mentioned that messages related to these changes would be shared after the Shapella hard fork.

LDO’s smart contract supply dropped slightly from 45.74% to 45.09% in mid-March, while transfer rates increased slightly. Despite a bullish week in the cryptocurrency market, LDO’s price remained weak, trading at a discount to its weekly high.

The coin also struggled to stay above the 50-day moving average and lacked strong momentum due to low investor interest. Exchange inflows and outflows have decreased, but outflows still exceed inflows. Low trading volumes indicate low whale activity, and uncertainty surrounding staked funds being sold may discourage accumulation.

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