Lido DAO (LDO) experienced a significant price surge following the release of its Q1 2024 Validator and Node Operator Metrics (VaNOM) report. The token price climbed 10% in the last 24 hours, trading at $2.35 at the time of writing. LDO’s market cap has surpassed $2 billion, while its 24-hour trading volume surged to $474 million, a 148% increase.
The VaNOM report, published on May 23, highlighted notable changes in client diversity, particularly at the execution level. The usage rate of the client Geth dropped to 46%, a considerable decline from 96% in 2022 and 67% in Q4 2023. Additionally, the report indicated a decrease in the use of public clouds, from 46% to 40%. These changes suggest a strategic diversification in technology, reducing reliance on specific platforms like Geth and public clouds. The report, however, did not elaborate on the reasons behind these shifts.
Earlier on May 21, LDO’s price saw a 40% increase after Lido DAO effectively managed a security breach involving Numic. The breach, detected on May 14, involved unauthorized access to a developer machine used by Numic, a Node Operator working with Lido on the Ethereum protocol.
Despite concerns about potential compromise of the mainnet validators’ encrypted key material backups, there was no evidence of tampering or malicious use. Numic responded promptly by setting all depositable keys to zero and systematically removing any potentially compromised keys, preventing new deposits from being directed to possibly compromised validators.
Lido DAO contributors played a crucial role in assisting Numic with a thorough investigation of the breach. Precautionary measures were successfully implemented without disrupting validator operations, and the incident did not result in any financial losses.
This proactive approach to security and the diversification in technology highlighted in the VaNOM report have contributed to the positive market response and the significant price surge of LDO.
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