It seemed like it was going to be a quiet session before the holiday weekend, but things changed when President Trump decided to escalate trade tensions once again. In a post...
Read moreIt seemed like it was going to be a quiet session before the holiday weekend, but things changed when President Trump decided to escalate trade tensions once again.
In a post on Truth Social, the president expressed frustration with the European Union, stating that discussions with them were not going well. He announced a recommendation for a 50% tariff on the EU starting on June 1.
President Trump also targeted Apple and its CEO Tim Cook, insisting that iPhones sold in the U.S. should be manufactured in the country. He warned of a 25% tariff if this requirement was not met.
Following these announcements, U.S. stock index futures went from slight gains to almost 2% losses, while Apple’s stock fell 3.6%. The price of bitcoin also dropped from above $111,000 to $108,600 in a quick reaction to the news.
Tags:ADAAIAmericaBinanceCryptoDOGEDonald TrumpEUmemecoinTrumpUnited StUnited StatesUSWorld Liberty Financial
During Justin Sun’s last visit to the United States, he held the title of Grenada’s WTO ambassador and faced challenges with former President Biden’s stance on cryptocurrency. However, times have changed...
Read moreDuring Justin Sun’s last visit to the United States, he held the title of Grenada’s WTO ambassador and faced challenges with former President Biden’s stance on cryptocurrency. However, times have changed since then. Sun now finds himself attending a gathering hosted by President Donald Trump for the top holders of his TRUMP memecoin. This event marked a pivotal moment as issuers are considering the possibility of a Tron ETF, indicating a significant shift in the cryptocurrency landscape in America.
In an exclusive conversation with our team at The Parrot Press following the Presidential dinner, Sun refuted claims that the token is utilized for bribery. He dismissed skeptics and highlighted Trump’s endorsement of crypto as a catalyst for a new wave of digital asset innovation in the country.
Sun’s ties to Trump’s crypto ventures date back to the period immediately following last year’s election when he invested up to $75 million in World Liberty Financial tokens. Additionally, the Securities and Exchange Commission (SEC) halted a civil fraud case against Sun and Binance once Trump assumed office. Despite ongoing investigations, the support from Trump and his affiliates has positioned the U.S. as a prominent player in the global crypto arena.
Critics have not shied away from condemning Trump’s decision to introduce a memecoin, with some attempting to connect token holders to white nationalism. Sun countered these allegations, emphasizing the fundamental right to freedom of speech under the First Amendment.
While meme coins have faced skepticism, Sun sees them as a valid component of the digital asset market. He referenced tokens like DOGE and SHIB as success stories that have facilitated widespread adoption of cryptocurrencies. Sun views memecoins as opportunities for entrepreneurship, acknowledging that not all ventures will thrive but emphasizing their value in driving innovation within the industry.
Tags:AIAmericaAppleBinanceBlackrockCryptoEUEuropeFinancegoldRobinhoodS&P 500solanaStocksTeslaTradingUS
Kraken is set to introduce tokenized shares of popular U.S. stocks such as Nvidia, Apple, and Tesla, as well as over 50 other stocks and exchange-traded funds (ETFs), according to a...
Read moreKraken is set to introduce tokenized shares of popular U.S. stocks such as Nvidia, Apple, and Tesla, as well as over 50 other stocks and exchange-traded funds (ETFs), according to a report by the Wall Street Journal.
These tokenized assets, named “xStocks,” will be built on the Solana SOL blockchain and will be open for trading 24/7 to investors globally. Some of the ETFs included in this offering are the SPDR S&P 500 ETF (SPY) and the SPDR Gold Shares (GLD).
Backed Finance will hold the real shares representing the stocks, allowing investors to redeem them at a 1:1 ratio for their cash value.
In April, Kraken initially unveiled over 11,000 U.S.-listed stocks and ETFs for trading in 10 states through its subsidiary Kraken Securities. This recent expansion now includes tokenized versions of more than 50 stocks and ETFs available to customers outside of the U.S., starting with regions like Europe, Latin America, Africa, and Asia.
Kraken’s move places it in direct competition with platforms like Robinhood (HOOD) and makes it the first exchange to successfully offer tokenized shares of major U.S. stocks. Binance previously attempted to launch tokenized U.S. stocks in 2021 but eventually abandoned the plans due to regulatory uncertainty.
A spokesperson from Kraken mentioned to the Wall Street Journal that the exchange is actively collaborating with regulators to ensure the legal offering of xStocks in each jurisdiction, taking into account the varying regulatory landscapes.
Tokenization, the process of converting real-world assets into blockchain tokens, has gained popularity in the crypto sphere. Companies like Ondo Finance, BlackRock, and Franklin Templeton have been early adopters of tokenization, contributing to the overall tokenization market reaching a market cap of $65 billion as of May.
Tags:ADAAIAmericaBinancebitcoinbtcCanadaCoinbaseCryptoDonald TrumpdubaiETHEUFinancegoldGovernmentHealthIranJapanminerMoving AverageS&P 500StocksStrategyTradingtrillionTrumpUSWashington
By Francisco Rodrigues (All times ET unless indicated otherwise) Bitcoin BTC surpassed Wednesday’s record to reach an all-time high of $111,875 in the early hours of Thursday, as traditional financial markets...
Read moreBy Francisco Rodrigues (All times ET unless indicated otherwise)
Bitcoin BTC surpassed Wednesday’s record to reach an all-time high of $111,875 in the early hours of Thursday, as traditional financial markets contended with rising bond yields and renewed concerns over ballooning U.S. debt.
The largest cryptocurrency has gained around 3.8% in the last 24 hours while the broader CoinDesk 20 CD20 index rose 4.74%, continuing a trend of strength driven by mounting institutional demand and growing interest in crypto exposure.
The rally is unfolding against a backdrop of higher yields on U.S. and Japanese government bonds. The 10-year U.S. Treasury yield rose to 4.6%, while the 30-year topped 5%, driven by concerns over President Donald Trump’s tax bill that analysts estimate could add as much as $5 trillion to the country’s debt, according to Reuters.
In Japan, yields on 30- and 40-year government bonds also hit record highs. The country’s debt-to-GDP ratio stands at 234%, QCP Capital said, and growing scrutiny coupled with weak demand for long-dated JGBs sent yields soaring.
That matters because higher yields — and thus higher returns — on investments that are considered relatively safe tend to lower the appeal of riskier assets like stocks, not to mention cryptocurrencies. While BTC, with its history of trading as a risky asset, hasn’t shown much sign of ebbing demand, it raises the question of how long the rally can continue.
Still, traders have been building large long positions in BTC options, with the most open interest now concentrated at the $110,000, $120,000 and even $300,000 calls for contracts expiring in late June in a sign of continuing bullish conviction.
U.S.-traded spot bitcoin exchange-traded funds have also been seeing significant demand. Total net inflows hit $1.6 billion over the week, and $4.24 billion so far in May, SoSoValue data shows. The inflows, coupled with bitcoin’s price rise, have seen the ETFs’ total net assets hit a record $129 billion.
There are, however, some muted signs of bearish activity.
“The largest block flow this week continues to be ETH December call spreads, while overnight BTC butterfly positions hint that some traders are positioning for consolidation around current levels,” Wintermute OTC trader Jake O. said.
Note, he’s talking about consolidation, not declines. And traditional participants may even be too bearish. While the U.S. endured a recent credit downgrade, markets are now pricing in a 6-level cut all the way down to BBB+.
On top of that, per Jake O., a recent equities market sell-off may not be a result of repositioning given higher bond yields, but rather profit-taking after nine consecutive positive sessions. Stay alert!
What to Watch
Crypto
May 22: Bitcoin Pizza Day.
May 22: Top 220 TRUMP token holders will attend a gala dinner hosted by the U.S. president at the Trump National Golf Club in Washington.
May 30: The second round of FTX repayments starts.
May 31 (TBC): Mezo mainnet launch.
Macro
Day 3 of 3: Canadian Finance Minister François-Philippe Champagne and Bank of Canada Governor Tiff Macklem will co-host the three-day meeting of G7 finance ministers and central bank governors in Banff, Alberta.
May 22, 8 a.m.: Mexico’s National Institute of Statistics and Geography releases (final) Q1 GDP growth data.
May 22, 8:30 a.m.: Statistics Canada releases April producer price inflation data.
May 22, 8:30 a.m.: The U.S. Department of Labor releases unemployment insurance data for the week ended May 17.
May 23, 8:30 a.m.: Statistics Canada releases (Final) March retail sales data.
May 23, 10 a.m.: The U.S. Census Bureau releases April new single-family homes data.
Earnings (Estimates based on FactSet data)
May 28: NVIDIA (NVDA), post-market, $0.88
Token Events
Governance votes & calls
Arbitrum DAO is voting on launching “The Watchdog,” a 400,000-ARB bounty program to reward community sleuths for uncovering misuse of the hundreds of millions in grants, incentives and service budgets the DAO has deployed. Voting ends May 23.
Lido DAO is voting on adopting Dual Governance (LIP-28), a protocol upgrade that inserts a dynamic timelock between DAO decisions and execution so stETH holders can escrow tokens to pause proposals at 1% of TVL or fully block and “rage-quit” at 10%. Voting ends May 28.
Arbitrum DAO is voting on a constitutional AIP to upgrade Arbitrum One and Arbitrum Nova to ArbOS 40 “Callisto,” bringing them in line with Ethereum’s May 7 Pectra upgrade. The proposal schedules activation for June 17, and voting ends on May 29.
May 22: Official Trump to announce its “next Era” on the day of the dinner for its largest holders.
June 10: Ether.fi to host an analyst call followed by a Q&A session.
Unlocks
May 31: Optimism (OP) to unlock 1.89% of its circulating supply worth $24.67 million.
June 1: Sui (SUI) to unlock 1.32% of its circulating supply worth $182.58 million.
June 1: ZetaChain (ZETA) to unlock 5.34% of its circulating supply worth $11.99 million.
June 12: Ethena (ENA) to unlock 0.7% of its circulating supply worth $16.78 million.
June 12: Aptos (APT) to unlock 1.79% of its circulating supply worth $61.86 million.
Token Launches
June 1: Staking rewards for staking ERC-20 OM on MANTRA Finance end.
June 16: Advised deadline to unstake stMATIC as part of Lido on Polygon’s sunsetting process ends.
Conferences
Day 3 of 7: Dutch Blockchain Week (Amsterdam)
Day 3 of 3: Avalanche Summit London
Day 3 of 3: Seamless Middle East Fintech 2025 (Dubai)
Day 2 of 2: Crypto Expo Dubai
Day 2 of 2: Cryptoverse Conference (Warsaw)
May 27-29: Bitcoin 2025 (Las Vegas)
May 27-30: Web Summit Vancouver
May 29: Stablecon (New York)
May 29-30: Litecoin Summit 2025 (Las Vegas)
May 29-June 1: Balkans Crypto 2025 (Tirana, Albania)
June 2-7: SXSW London
June 15-17: G7 2025 Summit (Kananaskis, Alberta, Canada)
June 19-21: BTC Prague 2025
Token Talk
By Shaurya Malwa
The HYPE token is in focus after a billion-dollar bitcoin trade boosted Hyperliquid’s fundamentals.
Pseudonymous trader James Wynn opened a $1.1 billion long on BTC using 40x leverage via Hyperliquid in one of the largest on-chain DEX trades ever recorded.
The position, tied to wallet “0x507,” was entered when BTC was priced at $108K and now sits on over $40 million in unrealized profit.
Wynn booked partial profits early Thursday by closing 540 BTC (~$60 million), to net $1.5 million.
His prior exits were followed by BTC declines, so traders are watching closely.
Hyperliquid runs on its custom L1, HyperEVM, using the HyperBFT consensus (200K+ TPS) with CEX-level features like real-time order books and deep liquidity — no KYC required.
The platform’s permissionless design and lightning-fast execution are increasingly drawing capital from centralized venues to DeFi , and this trade could set a precedent for whale activity.
HYPE jumped 15% in the past 24 hours on renewed attention and usage-driven speculation.
Derivatives Positioning
Analyzing the liquidations heatmap of the BTC-USDT pair on Binance, the largest liquidations cluster around $108.5K and $106.9K with liquidations worth $143 million and $112.5 million, respectively.
Meanwhile, the options market swells post-breakout, with open interest on Deribit climbing above $34 billion, just shy of the all-time high of $35.9 billion set in December. The bulk of this positioning is centered on the 30 May expiry, which now holds over $9 billion in notional value to become a key date for potential volatility.
Bullish sentiment is clearly in control, with traders aggressively targeting upside via calls. Strikes at $100K, $120K and $150K have attracted particularly large open interest, reflecting growing conviction in a continued rally.
Put/call ratios underscore this shift in sentiment — the 24-hour volume ratio has dropped to 0.49, while the open interest ratio sits at 0.60, indicating a meaningful tilt toward bullish exposure following BTC’s move above $110K.
Near-term options activity is also picking up, with weekly and monthly contracts seeing notable inflows. Traders appear to be positioning for further momentum or short-term price swings in the wake of the breakout.
Market Movements
BTC is up 1.19% from 4 p.m. ET Wednesday at $110,690.36 (24hrs: +4.05%)
ETH is up 6.19% at $2,662.72 (24hrs: +5.23%)
CoinDesk 20 is up 3.64% at 3,348.63 (24hrs: +4.88%)
Ether CESR Composite Staking Rate is unchanged at 3.03%
BTC funding rate is at 0.03% (10.95% annualized) on Binance
DXY is up 0.25% at 99.81
Gold is down 0.26% at $3,305.6/oz
Silver is down 0.83% at $33.17/oz
Nikkei 225 closed -0.84% at 36,985.87
Hang Seng closed -1.19% at 23,544.31
FTSE is down 0.68% at 8,726.62
Euro Stoxx 50 is down 0.96% at 5,402.31
DJIA closed on Wednesday -0.91% at 41,860.44
S&P 500 closed -1.61% at 5,844.61
Nasdaq closed -1.41% at 18,872.64
S&P/TSX Composite Index closed -0.83% at 25,839.17
S&P 40 Latin America closed -1.31% at 2,597.38
U.S. 10-year Treasury rate is down 2 bps at 4.58%
E-mini S&P 500 futures are unchanged at 5,865.50
E-mini Nasdaq-100 futures are up 0.15% at 21,188.50
E-mini Dow Jones Industrial Average Index futures are down 0.17% at 41,875.00
Bitcoin Stats:
BTC Dominance: 63.90 (-0.62%)
Ethereum to bitcoin ratio: 0.02409 (3.52%)
Hashrate (seven-day moving average): 875 EH/s
Hashprice (spot): $58.24
Total Fees: 7.89 BTC / $847,124
CME Futures Open Interest: 160,740 BTC
BTC priced in gold: 33.4 oz
BTC vs gold market cap: 9.47%
Technical Analysis
Bitcoin reached a new all-time high of $111,875 this morning, breaking decisively above the previous peak just above $109,000 set in January.
With a confirmed close above that level and no sign of a swing failure pattern, the bias remains firmly tilted toward continued upside. In the near term, BTC may encounter resistance around the $112,000–$113,000 range, aligning with a trendline drawn from the prior highs in December and January.
However, last week’s consolidation above $100,000 — and the successful reclaim of the previous all-time high — suggest this area is now acting as short-term support.
A pullback below $100,000, especially into the weekly order block, would likely represent a healthy correction within the broader uptrend and could offer a compelling reentry opportunity if further downside is seen.
Crypto Equities
Strategy (MSTR): closed on Wednesday at $402.69 (-3.41%), up 1.73% at $409.67 in pre-market
Coinbase Global (COIN): closed at $258.99 (-0.91%), up 2.78% at $266.20
Galaxy Digital Holdings (GLXY): closed at C$31 (+1.57%)
MARA Holdings (MARA): closed at $15.84 (-2.16%), up 4.42% at $16.54
Riot Platforms (RIOT): closed at $8.84 (-1.01%), up 3.39% at $9.14
Core Scientific (CORZ): closed at $10.78 (-1.28%), up 1.48% at $10.94
CleanSpark (CLSK): closed at $10.11 (+4.23%), up 4.65% at $10.58
CoinShares Valkyrie Bitcoin Miners ETF (WGMI): closed at $17.75 (-1.33%)
Semler Scientific (SMLR): closed at $44.89 (+7.19%), up 6.01% at $47.59
Exodus Movement (EXOD): closed at $32.76 (-5.07%), unchanged in pre-market
ETF Flows
Spot BTC ETFs:
Daily net flow: $607.1 million
Cumulative net flows: $43.35 billion
Total BTC holdings ~ 1.19 million
Spot ETH ETFs
Daily net flow: $0.6 million
Cumulative net flows: $2.61 billion
Total ETH holdings ~ 3.49 million
Source: Farside Investors
Overnight Flows
Chart of the Day
Top 20 digital assets’ prices and volumes
Chart of the day
Bitcoin adoption
A trader recently took a bold move by opening a $1.1 billion long position on bitcoin (BTC) with 40x leverage on the decentralized exchange (DEX) Hyperliquid. This rare instance of a...
Read moreA trader recently took a bold move by opening a $1.1 billion long position on bitcoin (BTC) with 40x leverage on the decentralized exchange (DEX) Hyperliquid. This rare instance of a ten-figure position entirely on a blockchain-based platform is linked to wallet address “0x507” belonging to the pseudonymous trader “James Wynn.”
According to Lookonchain data, the position was initiated at an entry price of $108,084, with a liquidation level just below $103,640, signaling a potential wipeout if BTC drops to that price. The trade is currently showing over $40 million in unrealized profit as of early Thursday.
In a strategic move, Wynn closed out 540 BTC (~$60M) during European morning hours to secure a $1.5 million profit. Previous exits by Wynn have led to sharp BTC pullbacks, which traders should watch out for, as noted by Lookonchain.
Hyperliquid operates on its own high-performance layer 1 blockchain called HyperEVM, offering features usually seen on centralized platforms such as real-time order books, deep liquidity, and minimal gas fees. The platform’s consensus mechanism, HyperBFT, can handle over 200,000 transactions per second, ensuring quick and transparent executions for traders.
Unlike centralized exchanges that require KYC or limit access, Hyperliquid permits anyone with a wallet to trade without restrictions. The platform’s speed and capital efficiency have made it popular, with the billion-dollar position potentially prompting other large players to explore onchain execution.
This move signifies a shift of capital from centralized finance to decentralized finance (DeFi), with whales now willing to make significant investments outside the traditional financial system. Additionally, the HYPE token of Hyperliquid has experienced a 15% increase in the past 24 hours due to rising demand.
Galaxy Digital (GLXY) recently made its debut on the Nasdaq, catching the attention of the crypto community. Crypto X, also known as Crypto Twitter (CT), was buzzing with users sharing news...
Read moreGalaxy Digital (GLXY) recently made its debut on the Nasdaq, catching the attention of the crypto community. Crypto X, also known as Crypto Twitter (CT), was buzzing with users sharing news about fast food chain Steak n’ Shake now accepting bitcoin BTC payments over the Lightning network. A video posted on social media showed a customer completing an order using the “Pay With Bitcoin” option and scanning the QR code with their Lightning wallet in the Zeus app.
Top Win International (TOPW), a luxury watch wholesaler, announced its plan to change its name to AsiaStrategy and manage its treasury in digital assets like bitcoin. This move mirrors Michael Saylor’s software company, MicroStrategy (MSTR), which holds a significant amount of bitcoin in its treasury. TOPW is partnering with Sora, a crypto-backed venture capital firm based in Hong Kong.
Shares of TOPW initially rose by 45% but later declined by 31% to $5.14. Sora had previously collaborated with Tokyo-based Metaplanet (3350), another company following the Strategy model.
Galaxy Digital, led by Mike Novogratz, has started trading on the Nasdaq Global Select Market. Novogratz called this listing a “pivotal moment” for Galaxy in a shared email letter. GLXY shares traded at around $22.61 on the Nasdaq, up by 3.2%, while Toronto-traded shares rose by 2.98% to C$31.48 ($22.53). Galaxy also announced that GLXY would continue to be listed on the Toronto Stock Exchange (TSX) for some time after the Nasdaq listing.
XRP saw a decrease of over 4% in the last 24 hours, leading the decline among major cryptocurrencies as the overall market slows down following last week’s significant rally. Bitcoin is...
Read moreXRP saw a decrease of over 4% in the last 24 hours, leading the decline among major cryptocurrencies as the overall market slows down following last week’s significant rally. Bitcoin is currently above $104,000, and traders are anticipating a steady increase beyond $105,000, which is now a key psychological and technical resistance level.
The total market capitalization of the crypto market dropped by 2% to $3.3 trillion, according to CoinGecko. Ethereum (ETH) and Solana (SOL) are also pausing near their 200-day moving averages, indicating a possible period of consolidation or a short-term pullback.
Alex Kuptsikevich, FxPro’s chief market analyst, noted that Bitcoin has been gradually forming a peak over the past week, usually a sign that a correction is imminent. The Crypto Fear & Greed Index slightly decreased from 73 to 70, remaining in the “greed” territory but showing a decrease in momentum.
According to Augustine Fan from SignalPlus, the markets may continue to edge higher unless equities experience a downturn. He warned that Bitcoin may face challenges breaking through the interim resistance at $105,000, while Ethereum could benefit more in the short term due to improving inflows and strong performance in altcoins.
Fan also highlighted a significant shift in capital allocation towards crypto, describing it as a more structural move favoring assets like emerging markets, precious metals, and cryptocurrencies to hedge against geopolitical and currency risks.
K33 Research observed that Bitcoin’s recent surge seems to be driven by spot market demand rather than excessive leverage, with retail investors and wealth managers from Asia contributing to sustaining the bullish sentiment. Nick Ruck from LVRG Research mentioned that the market slowdown may be due to caution ahead of upcoming macroeconomic data and concerns about the long-term effects of recent U.S. trade agreements.
The current market situation indicates a wait-and-see approach just below critical breakout levels, with the next significant move expected to dictate the overall market direction.
The cryptocurrency market is currently displaying a mix of signals as geopolitical developments bring both opportunities and challenges for digital assets. TRON’s TRX token has shown impressive strength with a 4.8%...
Read moreThe cryptocurrency market is currently displaying a mix of signals as geopolitical developments bring both opportunities and challenges for digital assets. TRON’s TRX token has shown impressive strength with a 4.8% rally over the past 24 hours, moving from $0.264 to $0.276 before a minor correction. This upward trend coincided with TRON surpassing Ethereum in USDT circulation, with $73.8 billion on TRON compared to Ethereum’s $71.9 billion.
Following the announcement of a recent trade agreement between the U.S. and China by the White House, there has been a potential easing in trade tensions, boosting market sentiment. In addition, institutional adoption of digital assets is on the rise, as seen with Coinbase being added to the S&P 500, indicating a growing mainstream acceptance of cryptocurrencies.
Some key technical analysis highlights for TRX include the token climbing from $0.264 to a peak of $0.276 with strong volume at breakout points. There was notable buying pressure at $0.265 during specific trading sessions, as well as resistance around $0.275. Despite a slight pullback, consistent higher lows suggest continued bullish momentum.
Disclaimer: The information in this article was created using AI tools and reviewed by our editorial team for accuracy. For more details, please refer to our standards and AI Policy. External references for this article can be found in the sources below.
Brave Wallet, the cryptocurrency wallet integrated into the privacy-centric Brave web browser, is set to add support for the Cardano blockchain. This will enable users to easily send, receive, and swap...
Read moreBrave Wallet, the cryptocurrency wallet integrated into the privacy-centric Brave web browser, is set to add support for the Cardano blockchain. This will enable users to easily send, receive, and swap ADA and Cardano-native assets directly within the browser.
This expansion of Brave’s multichain functionality goes beyond its existing support for networks like Ethereum and Solana. Input Output (IO), the development team behind Cardano, announced the upcoming integration with Brave Wallet.
Once the integration is finalized, users will have access to Cardano governance features directly through Brave Wallet. This means they can sign transactions and manage assets without needing any third-party browser extensions.
Charles Hoskinson, CEO of IO, views this rollout as part of a broader effort to encourage secure and private on-chain participation. He emphasized its importance as Cardano progresses into the Voltaire era, which focuses on decentralized governance.
Furthermore, the upcoming support in Brave Wallet paves the way for potential collaborations involving Midnight, IO’s privacy-focused blockchain project centered around confidential smart contracts and data protection.
Lido Finance, the leading liquid staking platform on the Ethereum network by locked value, has put forward a proposal that would allow staked ether (stETH) holders to have a direct say...
Read moreLido Finance, the leading liquid staking platform on the Ethereum network by locked value, has put forward a proposal that would allow staked ether (stETH) holders to have a direct say in governance decisions alongside existing DAO tokenholders.
The proposal, known as Lido Improvement Proposal (LIP) 28, suggests implementing a dual governance system where stETH holders – those who stake ETH through Lido and receive a liquid token in return – can participate in vetoing key protocol decisions. Currently, only holders of LDO, Lido’s governance token, have the authority to influence the evolution of the protocol.
The intention behind this upgrade is to enhance accountability and decentralization within the platform, particularly as Lido remains a dominant force in Ethereum’s staking sector, with over 25% of all ETH staked on the network utilizing its infrastructure.
Under the proposed system, stETH holders would have the ability to veto certain proposals approved by LDO tokenholders, although this veto power does not grant them the ability to unilaterally push through proposals.
The new governance setup includes a timelock contract that introduces a dynamic timelock mechanism between Lido DAO’s decisions and their implementation. This feature allows stETH holders to intervene if they strongly oppose a decision, providing a layer of oversight and ensuring that changes are not rushed through without proper consideration.
The proposal aims to address the complexities of Ethereum staking, where liquidity and withdrawal processes are not as straightforward as in traditional on-chain governance systems. The dynamic timelock kicks in when a sufficient number of users deposit their stETH into an escrow contract to object to a proposal, triggering an increase in the timelock duration.
If dissent among stakers persists and deposits reach a certain threshold, termed as the “second seal,” a mechanism called “rage quit” is activated. This blocks the execution of the DAO’s decision until all protesting stakers have had the chance to withdraw their ETH, offering a safety valve for objection and exit.
As the Ethereum network experiences a surge in value following the Pectra upgrade, Lido and other Ethereum-native applications are gaining increased attention for their role in capital flow and validator participation across the chain. The LIP-28 proposal is currently under discussion, with an official on-chain vote expected in the near future.
If approved, this change could potentially reshape governance dynamics within Ethereum’s staking ecosystem, setting a new standard for DeFi protocols looking to involve users, not just tokenholders, in decision-making processes. Lido’s competitors in this space include Rocket Pool and Frax Ether.
While LDO prices have seen a 6.5% increase in the last 24 hours, the broader market gauge, the CoinDesk 20 Index, has climbed by 2.5% amidst the positive outlook for Ethereum and its related applications.
