Lido DAO price drops 16% after Ethereum staking reward cut proposal

LDO, the token of Lido DAO, the largest Ethereum liquid staking platform, fell 16.31% in trading on Wednesday, 14 Mordad 1405 (5 August 2026), after the publication of a new Ethereum proposal known as EIP-8361 aimed at cutting staking rewards from 2.6% to 1.2%. According to Arzdigital, on-chain data showed more than $214,000 worth of LDO flowing into exchanges, typically a sign holders are preparing to sell, while trading volume jumped 230%.

Even so, open interest in the token's derivatives market rose 14.26% to $67.18 million, suggesting some traders are using leverage to trade the volatility rather than exiting altogether. The token's price showed a positive reaction after touching the $0.2757 support level.