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Justin Sun pledged $500 million and 300,000 Ether, breaking Lido's single-day pledge inflow record.

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Justin Sun pledged $500 million and 300,000 Ether, breaking Lido

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stETH Sixth Largest Holder

According to Nansen data, Justin Sun, the founder of Tron, pledged 303,735 ETH through several transactions in Lido Finance from February 25 to February 27, becoming the sixth largest holder of stETH.

This amount is nearly $500 million, accounting for over 70% of his assets in three wallets totaling approximately $689 million. This represents about 0.9% of Lido's total staked amount and is equivalent to 73.6% of the total amount of Ether staked in another staking protocol, Rocket Pool.

Some members of the crypto community are puzzled by Justin Sun's on-chain actions, especially since he invested the majority of his funds in Lido without a significant emphasis on the staking yield.

Justin Sun has not responded to this news on Twitter.

Lido Implements Daily Staking Limit

Justin Sun's staking broke Lido's record for daily staking inflows, further activating the security feature of the Lido protocol: "Staking Rate Limit."

The purpose of the staking rate limit is to reduce the impact of a surge in staking inflows on the reward distribution model. It will dynamically reduce the total amount of stETH that can be minted based on 24-hour deposits, approximately 6,200 ETH per hour, with a daily staking limit of 150,000 ETH.

It will also restrict all third parties attempting to mint stETH, whether through front end or direct contract calls.

Previously reported, the increase in liquidity staking protocols was further driven by Kraken being fined by the U.S. SEC and exiting the U.S. staking business, as well as the upcoming Ethereum Shanghai upgrade allowing ETH unlocking. The percentage increase since the beginning of the year is as follows:

  • Ankr ANKR: 175%

  • Lido DAO LDO: 227%

  • Frax Share FXS: 161%

  • Rocket Pool RPL: 142%

  • ssv.network SSV: 368%

Lido's dominant position in Ethereum staking has not improved, with Rated showing Lido's staking share at 29.9%, far exceeding second-place Coinbase at 11.18%.

Previously, a proposal for Lido to self-impose limits was rejected by over 99% of the community members who voted on Snapshot.