Solana: Lido Finance Halts SOL Staking After DAO Decision

Bombolo | News and Media

In a significant development, Lido Finance has chosen to discontinue Solana (SOL) staking on its platform, following a vote by Lido's LDO token holders. An overwhelming majority, approximately 92% of the voters, favored the cessation of this service. This move was later confirmed by the developers, who announced that the SOL staking service would gradually phase out over the next few months.

Also Read: The Bullish Surge in the Crypto Market: Solana's Journey to New Highs

The Decision to Halt Solana Staking

Lido DAO members arrived at this decision after extensive discussions and a formal vote. They explained that, despite the strong relationships Lido had fostered within the Solana ecosystem, discontinuing SOL staking was deemed a necessary step to ensure the broader success of the Lido protocol ecosystem. This choice was not made lightly but was driven by overarching considerations.

One of the primary factors contributing to this decision was the exorbitant costs quoted by P2P developers to maintain the service. Over time, SOL staking on Lido had seen a significant decline. To put it into perspective, in April 2022, there were approximately $440 million worth of SOL tokens locked on the Lido platform. Fast forward to the present, and that number has dwindled to only about $55 million, marking an astounding 87% decrease.

Also Read: Solana's Remarkable Rally: Breaking Records and Predicting the Future of SOL Coin!

A Glimpse of Hope for SOL

Despite the closure of SOL staking on Lido, there is optimism surrounding the future of the SOL token. Analysts are observing a potential formation of an inverse head and shoulders pattern, which often signals an impending rally. This development has raised expectations, with some analysts predicting that SOL may soon reach values of $33.85 or even $38.82 in the coming days.

SOL's Impressive Performance

SOL has emerged as one of the standout performers in the cryptocurrency market this year. Since the beginning of the year, SOL's value has surged by almost 120%. This remarkable growth surpasses the gains made by Bitcoin (BTC), which experienced an impressive but lesser increase of around 60% over the same period. It's worth noting that SOL's performance is even more commendable when considering the challenges it faced following the FTX collapse in November 2022.

Lido Finance's decision to terminate SOL staking may have been a tough one, but it was driven by a commitment to the long-term success of their ecosystem. As the cryptocurrency market continues to evolve, the future of SOL remains a topic of great interest, with exciting possibilities on the horizon.

Also Read: Unlocking the Potential: Is Solana a Smart Investment in the Crypto World?

FAQs

1. Why did Lido Finance decide to end SOL staking on their platform?

Lido Finance made this decision following a vote by LDO token holders, with an overwhelming majority in favor of discontinuing SOL staking. High operational costs and other considerations were contributing factors.

2. What led to the decline in SOL staking on Lido?

SOL staking on Lido experienced a sharp decline due to the substantial costs associated with maintaining the service. This, coupled with other factors, led to a significant drop in locked SOL tokens.

3. Is there hope for SOL's future despite the closure of staking on Lido?

Yes, there is optimism in the cryptocurrency community. Some analysts believe that SOL is on the cusp of a rally, and its impressive performance this year indicates its potential for growth.

4. How has SOL performed compared to Bitcoin (BTC) this year?

SOL has outperformed Bitcoin, with a nearly 120% increase in value since the beginning of the year, while BTC saw a growth of around 60% over the same period.

5. What challenges did SOL face after the FTX collapse in November 2022?

SOL was one of the cryptocurrencies affected by the collapse of FTX in November 2022. Despite this setback, it has managed to bounce back and show strong growth in the market.