DeFi users deposit their ETH in the Lido protocol and receive stETH in return. The reason for this behavior is the possibility that the ETH they invested will gain more value after the expected big Ethereum transition. Of course, this is not the only method. Ethereum whales also arbitrage using Lido Staked ETH (stETH).

Investors see the discount on Lido Staked ETH (stETH) as an arbitrage opportunity because stETH will become 1-to-1 exchangeable with Ether after Ethereum's transition to PoS. To give an example, let's say the price of Ethereum is $1000 right now. If you buy 1 stETH for $ 850 due to the price difference, you will have 1 Ethereum in your hand after the Ethereum transition. Whichever way you look at it, this means a 15% gain.


According to blockchain data analytics platform Nansen, sophisticated investors, especially those who know the market, are very aggressive about discounted Lido Staked ETH (stETH).

Arbitrage trade should not be underestimated. The founders of the largest crypto exchanges in the market today started with arbitrage. Lido price seems to be on the rise with both the Ethereum transition approaching and the increase in arbitrage trading. According to Coinmarketcap data, the Lido price has increased by 160% in the last week. In the last 24 hours, there has been an increase of more than 80%. Among the top 100 cryptocurrencies, the highest increase in the 7-day period was experienced in Lido.

Lido DAO, which went up to $ 1.82 during the day, was trading at $ 1.64 at the time of this news. Although Lido seems to be in an uptrend recently, ATH is well below its August 2021 price. Lido DAO has lost 77% of its value from the $7.3 level it reached last year.