Prior to the Ethereum Shanghai upgrade, Justin Sun staked 150,100 ETH, which resulted in a breach of the Lido DAO protocol's staking cap.
The massive stake by Justin Sun, the inventor of Tron, has intensified the excitement surrounding the imminent Ethereum Shanghai upgrade. The Ethereum staking volumes increase as the Shanghai upgrade d
raws closer, despite the staking limit appearing to be reached and making it more challenging for the transaction to complete. Up to 5.40 million ETH have currently been staked on the Lido protocol by 167,687 stakers. With the Shanghai upgrade, staked assets can now be withdrawn, potentially increasing market liquidity.
The forthcoming update might show off The Merge's true effects, which changed Ethereum's consensus process to proof of stake. This consensus system has reduced energy costs compared to the prior proof-of-work process. Contrary to great predictions, the Ethereum price did not increase when The Merge was finished in mid-September 2022.
The most daily stakes are added to Lido.
With more over 150,000 ETH invested, February 25, 2023 was the Lido protocol's greatest daily influx of stakes to date. This is probably due to the 150,100 ETH staked by Justin Sun. A crucial protocol safety mechanism called Staking Rate Limit was activated as a result of the significant staking inflow. According to the Lido team, some users may experience delays in receiving their stETH as a result. The decrease in daily trading volume could be the cause of the recent difficulties in recovering stETH. The daily volume has decreased by 25% from $175 million on February 23, 2023.
This protocol safety feature, known as the Staking Rate Limit, is a dynamic mechanism to react to significant stake inflows and mitigate potential side-effects like rewards dilution, without having to cease stake deposits expressly.
Regarding the liquidity of Ethereum (ETH), Lido Staked ETH (stETH), and Lido DAO (LDO) tokens, the Shanghai upgrade may have an impact on the cryptocurrency market.