Lido Confirms Ethereum Staking Is Safe Amid Crypto Market Uncertainty

The total crypto market cap dropped by $43 billion on May 12, now standing at $3.28 trillion, based on TradingView data. This drop comes after several days of upward momentum

The total crypto market cap dropped by $43 billion on May 12 to reach $3.28 trillion by 10:30 UTC. This brought a halt to the gains seen earlier this week.

This $3.28 trillion level appears to be acting as a key support. If it breaks, the next level to watch on the downside is $3.16 trillion.

The sudden dip may bring increased pressure on major altcoins and Bitcoin. The previous rally had pushed the crypto market cap toward $3.40 trillion. Now, market participants are reacting to this correction.

Also Read: Institutional Bitcoin Volume Reaches 12-Week High Ahead Of May 12 Candle Close

What Went Down In The Crypto Market Today?

The crypto market downtrend brought an end to the gains seen earlier this week with some key trends emerging.

The crypto market breadth remains high, with 74% of coins in the green over the last 24 hours. However, the gains were largely seen yesterday, and prices have since stalled.

The sharp drop in crypto prices also raises questions about the overall trading sentiment, especially among altcoin traders.

Relative Strength Index (RSI) values on the 4-hour charts of major altcoins like Arbitrum (ARB), Lido (LDO), and Apellis Pharmaceuticals (NASDAQ:APLS) suggest that these tokens may be overbought.

This indicates that the coins could be due for a period of consolidation or a potential reversal in price trend.

Despite a successful response to an isolated attack on its validator oracle, Chorus One confirmed that the incident was contained.

No Wider Breach Detected

The crypto service provider said in a statement on Friday that an attacker had compromised a validator oracle used for Lido's decentralized autonomous organization (DAO) treasury.

"This was an isolated incident, and there was no broader breach of Chorus One’s systems or Lido's validator node infrastructure."

The incident led to the loss of 1.46 ETH, according to reports.

In response to the incident, Lido's DAO quickly voted to rotate the oracle address. This move effectively disabled the attacker's access and restored control over the affected module.

"There is no evidence of any additional compromise of the system or of any issues with the integrity of the service during the period it was live."

Lido's core staking services remained fully operational throughout the event. Users could still deposit and withdraw staked ETH smoothly. Moreover, the validators maintained optimal performance, and the protocol's infrastructure functioned without interruption.