Lido will limit the amount of ETH staking deposited
Lido Finance has activated a security feature called Staking Rate Limit. This came after the platform recorded the largest daily asset inflow of 150,000 ETH in ETH staking.
In a statement dated February 25, the Lido Finance team explained that the new feature will allow the protocol to handle the large influx of assets. The limitation will reduce the amount of StETH that can be mined at any given time based on deposits in the last 24 hours. This will help avoid diluting the share of rewards without stopping new tokens from being deposited.
Lido is one of the fastest growing liquid-stacking platforms. It is currently receiving increased interest from the community due to the upcoming Ethereum Shanghai update and compares favorably to other competitors:
The platform’s commission is only 10%. By comparison, Coinbase takes more than 40% of its profits from staking.
Lido lets you bypass the 32 ETH limit.
Derivative token stETH can be added to the liquidity pool for additional profits.
Justin Sun has placed more than 150,000 ETH on Lido.
According to Lookonchain, Tron founder Justin Sun has posted over 150,000 ETH in staking on Lido. This isn’t the first time the cryptopreneur has blocked tokens belonging to him on the platform. Currently, San’s total number of Ethereum tokens is 201,000 – at current exchange rates, that’s about $320 million.
Given that the APY on Lido is about 4%, the reason for the increase was likely passive income. In the last 24 hours, San has earned 18.68 ETH on staking.
What’s going on with the LDO price
Because of increased user activity, the price of the LDO platform’s native token has risen by about 9% in the last 24 hours. At the time of publication, the asset was trading at $3.08.
Nevertheless, some of the whales are actively getting rid of token stock. Recently, MakerDAO founder Rune Christensen sold 18.8 million LDO for 27 million DAI, 7,553 MKR and 92 ETH. And a couple of months earlier, Aave creator Stani Kuleshov said goodbye to 715,000 LidoDAO coins.
Earlier we reported that Binance introduced the Binance Airdrop Portal platform.
Cryptotraders lost more than $250,000,000 in liquidations after Fed rate hike
Cryptotraders had a tough day: almost 68,000 positions were liquidated on exchanges in the last 24 hours, and the total volume of liquidations exceeded $257,000,000. All this happened against the news of the US Federal Reserve’s rate hike and another Securities and Exchange Commission regulatory action against cryptocurrencies.
Cryptotraders lost $132,000,000 in BTC
Bitcoin, Ethereum, and Ripple were the leaders in the number of forcibly closed positions. BTC liquidations totaled almost $132,000,000; Ethereum traders lost $51,000,000. XRP positions accounted for about $8,000,000 of liquidations. Bitmex exchange executed the largest order of $7.39,000,000.
Cryptocurrency market capitalization has declined 2% in the last 24 hours, but is still above the $1 trillion mark.
The weekly CoinShares report also recorded a massive outflow of funds for six consecutive weeks. During that period, nearly $500,000,000 was withdrawn from cryptocurrency platforms, with $113,000,000 coming from bitcoin. Analysts at the company believe the outflow is due to liquidity needs during the banking crisis rather than a negative outlook. The company mentions that a similar scenario was seen in March 2020 amid a COVID-19-induced panic.
Regulators continue to hunt the cryptobusiness
Another reason for the increased volatility in the market has been harsh action from U.S. regulators. Last night it became known that the U.S. Securities and Exchange Commission sued cryptomagnate Justin Sun, accusing him of fraud and market manipulation.
The SEC also issued a notice of wrongdoing against Coinbase, the largest U.S. cryptocurrency exchange. The securities regulator sued Coinbase Global Inc, for some of the products it offers.
We previously reported that Bitcoin (BTC) tests $28,000, but onchain metrics urge caution.
Binance was caught circumventing KYC to register Chinese clients
Employees of the cryptocurrency exchange Binance help clients from China to bypass compliance and verification. CNBC writes about it, citing hundreds of corporate emails from exchange employees on Discord and Telegram. It is reported that Binance has helped over 200,000 users register, bypassing its own security system. One case describes correspondence between a user from China and a Binance employee.
The employee under the pseudonym yaya.z suggested the user from China turn on a VPN, register as a Taiwanese resident and then return the location to China. Binance employees also advise customers not to use VPN services from the U.S., Hong Kong and Singapore, because the exchange does not provide services in those regions, writes CNBC. At the same time, Binance freely processes applications from U.S. email providers like Gmail or Outlook for registration.
The exchange even offers specialized mobile applications for customers from China. A CNBC reporter could download a special mobile application from Binance via email. At the same time, no VPN was needed to download the app, as the download was conducted through the domain of binance[.]com. It is also alleged that the exchange still verifies users with Chinese phone numbers.
An exchange spokesperson denied the existence of a special Chinese version of the mobile application. The exchange also added that it has improved the system to identify users from banned regions. CNBC notes that after providing evidence, Binance removed employee messages from corporate chats to circumvent KYC.
We previously reported that the Ethereum (ETH) price crossed the $1,800 mark, opening the way to $2,000.
Why cryptoanalysts expect bitcoin to fall
The market remains in a bearish trend and bitcoin (BTC) will resume its fall and test $16,000. There are two reasons:
The first statement can be confirmed or disproved by a technical analysis of the cryptocurrency market, but there is not enough additional information for the second.
The market capitalization of altcoins (ALTCAP) does hold nearly $605 billion of resistance. Although ALTCAP has risen above it several times, it didn’t develop above this area.
However, the daily RSI has broken through the bearish divergence trendline (green line). Such a breakout often precedes significant reversals into a bullish trendline. As a result, ALTCAP will move higher towards the $680B resistance area. If not, ALTCAP could fall back to the $518B support area.
There are also those who argue that bitcoin will test the $10000-$11000 area because there is a CME price gap that needs to be filled. The gap refers to the difference between the closing price of bitcoin futures on the Chicago Mercantile Exchange (CME) on Friday and the opening price on the following Monday.
We previously reported that Hong Kong has allocated another $50,000,000 to the crypto industry.
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