Celsius Network Could Withdraw $782 Million From Lido Finance, Putting Downward Pressure on ETH Price
Lido Finance, a decentralized finance (DeFi) protocol that allows users to stake Ethereum (ETH) and earn rewards, is facing a potential $782 million withdrawal from Celsius Network, a crypto lending platform that filed for bankruptcy earlier this month.
As of May 16, Lido Finance’s Ethereum withdrawal buffer consists of 452,710 ETH, 94.5% of which has been claimed by Celsius. This means that Celsius could potentially withdraw up to 435,000 ETH from Lido Finance, which would be worth around $782 million at current prices.
A large withdrawal of ETH from Lido Finance could put downward pressure on the price of the asset. This is because Lido Finance is one of the largest providers of ETH staking services, and a large withdrawal could lead to a decrease in demand for ETH staking.
In addition, a large withdrawal from Lido Finance could also lead to a decrease in liquidity for ETH. This is because Lido Finance is a major source of liquidity for ETH, and a large withdrawal could make it more difficult for traders to buy and sell ETH.
Overall, a large withdrawal from Lido Finance could have a significant impact on the price of ETH and the overall crypto market. Investors should be aware of the potential risks associated with this event.
Debangshu is a content writer specializing in the Crypto and DeFi beats. Moreover, he holds 3 years of writing experience in technical niches. He has produced content for a wide range of publications and news outlets, ranging from cryptocurrency-oriented websites to corporate websites.