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Major U.S. equity rebounded on Friday in the wake of the unveiling of the nonfarm payroll data. While the unemployment rate slid to a record low and payrolls topped expectations, the surprisingly decelerating wage growth buoyed the risk-on sentiment, sending the probability of a 25bps rate hike to 74.7% following the data release. Meanwhile, the broader cryptocurrency market soared over the weekends, with Bitcoin and Ether up 1.46% and 3.34%, respectively, in the past 24 hours. The top mover for today, LDO, which registered a 24-hour return of 30.47% as of the time of writing, has outperformed the market, as the upcoming Shanghai upgrade plans to focus exclusively on ETH withdrawals.
LDO is the native token of Lido DAO, the largest liquid staking service provider on the Ethereum network. We covered last week that the news of Lido becoming the largest DeFi protocol spurred the token price, leading to remarkable outperformance in the past week. The momentum passes over to this week, as the Ethereum developers meeting revolves around plans to focus exclusively on enabling ETH withdrawals. This decision caused a delay in all other schedules, including adding Ethereum Virtual Machine Object Format (EOF) that could improve Ethereum’s EVM environment. The community’s determination to switch on ETH withdrawal by March boosts investors’ confidence in liquid staking tokens as the staked ETH will be more liquid.
That said, the LDO’s 2-week return totals a whopping 101.7%, as compared to Ether’s 7.3% in the same period, pushing the RSI on the daily chart to 81 as of the time of writing, an extremely overbought print that signals investor hysteria. Furthermore, Nansen's smart money chart indicates profit realization from whales as the price surged, adding to the risk that LDO may face a near-term adjustment after token prices double in two weeks.
Check Out the Latest Prices, Charts, and Data for LDO/USDT!
Balancer, one of the top decentralized exchanges on Ethereum with a TVL of $1.5 billion as of the time of writing, urgently asked liquidity providers (LP) to exit liquidity positions due to an unrevealed security risk across all supporting chains. The most recent announcement from Balancer indicates 85% of LP funds at risk have been withdrawn. While Balancer continues to work on fixing the bug, the exact details are yet to be released. Amidst the emergency call to withdraw funds, protocol fees of some Balancer pools were set to zero as a mitigating measure. As such, the exact casualty of this incident is unknown, but it seems the prompt action from the community may have contained losses.
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