LIDO Plunges 16% as Ethereum Staking Proposal Sends Shockwaves

Lido DAO's token, LDO, took a hit of 16.31% over the past 24 hours due to concerns over its future after Ethereum proposed EIP-8361.

The proposal aims to reduce staking yields from around 2.6% to 1.2%, which threatens the appeal of liquid staking products like stETH, used by Lido DAO.

Investors reassessed their outlook for LDO's long-term growth as trading activity surged with a 230% increase in 24-hour volume.

The market priced in the potential impact on Lido's total value locked and protocol revenue despite the proposal not yet being implemented.