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One particular project that has seen a recent price spike is Lido (LDO), an Ethereum-based liquid staking service provider which is a decentralized autonomous organization. According to the news, Kraken recently announced that it has resumed its staking services to certain states in America, which triggered a 20% increase within Lido’s native currency LDO in the market.
Kraken Reintroduces Staking in 37 US States
On the 30th of January, one of the leading platforms for buying and selling cryptocurrencies, Kraken, announced the reactivation of staking for its clients in 37 states and two territories of the United States of America. This move comes as a result of increasing regulation under which the exchange had to suspend staking services the previous year. There are also plans to further extend the staking service to other US states as the regulators relax their rules each.
As a brief background for KRAKEN’s staking service, it entails the process of depositing staked assets to validators on the network. These validators perform the function of transaction validations and block generation in PoS networks. They want the customers, who stake their tokens, to be rewarded with tokens; they will, however, first deduct the cost of their services at Kraken.
Speaking of the return of staking in the United States, Mark Greenberg, the Kraken’s Global Head of Consumer, said that this is good news for the industry. He stated:
“In simple words, Kraken fulfills the need for an interface and a place where people can work with the crypto space and perform more and more diverse operations from a familiar environment. On-chain staking is one of those means through which we meet this task and we do expect the continuous staking resumed in the US today will be instrumental to the building and adoption of the crypto space.”
Subsequently, it is reported that there has been a significantly increased demand for Lido (LDO), which in turn took its price above the $ 2 mark. Currently, with a total market capitalization of 2.1 billion dollars, LDO occupies the 63rd place according to the size of the capitalization.
Lido’s Price Action and Market Sentiment
Lido’s price has also had quite a bullish run-up, from $1.98 on January 30 up to the high of $2.37, up 20%. This comes in line with a higher and more positive vibe associated with Ethereum staking and its liquid staking derivatives.
Thus, the growth unable to foresee such a significant increase in the price of Lido (LDO) shows that the market will soon experience support for staking, especially after the decision of Kraken. This year, staking is on the verge of going mainstream in the United States as investors and traders are preparing to make long-term investments.
Analysts Predict Further Upside for Lido (LDO)
In this article, cryptocurrency analyses and price forecasting shall be used to establish whether LDO has room for a more significant price increase in the future.
The opinion was expressed by World of Crypto, a famous analyst, as he pointed to the fact that LDO is trading in a bullish pennant and a descending broadening wedge which may signal a price rise soon. If this breakout prevails, the analyst has the view that LDO could reach the zone of $7- $8 within the coming few weeks.
Another analyst known as Daan Crypto also pointed out $3 to be a significant resistance level through which LDO can break and increase its value further. He claimed that LDO’s performance stemmed from investors getting ready for a bull run in Ethereum staking, as per the below:
‘Its only a matter of time before the first ETH Spot ETF which will have staking is launched on the market.’ It should set the tone for the ETH & staking story and should also help enhance the performance of these Liquid Staking Derivatives coins.”
Since Lido is a project connected to Ethereum staking, its price largely depends on the Ethereum market. Luckily, for the holders of the LDO coin, sentiments in the ETH market remain positive.
Ethereum’s Price Outlook and Its Impact on Lido (LDO)
ETH has a significant position in Lido’s ecosystem since the price of LDO correlates with the staking of ETH assets. There was some sort of a bull run, which faded and analysts continue to look forward to the future price direction in the next weeks.
- Ethereum in particular, a Crypto psychological analyst also by the nickname of Mister Crypto, has stated that the cryptocurrency looks like they have bottomed out hence the asset is ready to surge significantly.
- If Ethereum increases, then staking activity will increase thus increasing the demand for Lido services meaning LDO price will also have an upward movement.
At the time of writing this article, Ethereum is valued at around $2,350 but is gaining some ground. An outstanding above the crucial technical levels can also prompt the consequent bullish pattern for both ETH and LDO.
What’s Next for Lido (LDO) and Staking in the US?
Since Kraken is currently rolling out staking services in some states of America, the regulation continues to be a significant determining factor of staking services in the United States. Earlier the SEC was also concerned about the staking products offered by centralized exchanges. However, the approach adopted by Kraken in their reconsideration of staking may be part of the reason why it will become legal soon.
For Lido, additional expansion of staking services and as more institutions enter into Ethereum staking, it could push LDO’s price up. As the demand for decentralized staking is growing, it also applies to liquid staking, which might contribute towards the strengthening of Lido’s position in the market
