LDO Price Plunges 16% as Ethereum Staking Proposal Sparks Market Fears

Lido DAO's [$LDO] token price plummeted by 16.31% over the past 24 hours, amid concerns over Ethereum's [ETH] proposed staking overhaul, EIP-8361.

The proposal aims to reduce staking yields from around 2.6% to 1.2%, which could impact Lido's liquid staking products, such as stETH.

Market participants rapidly adjusted their positions, leading to a surge in trading activity with a 230% increase in 24-hour volume.

The market has priced in the potential impact of EIP-8361 on Lido's total value locked and protocol revenue, resulting in aggressive selling pressure.