The founder of TRON, Justin Sun, has caused a stir in the crypto community with his latest transaction. He staked 60,000 ETH (worth approximately $100 million) on Lido (Lido Staked Ether – stETH), the largest liquid staking protocol for Ethereum. This move not only underscores his confidence in ETH’s future but also suggests he is set to earn passive income from Ethereum’s transaction validation.

What is Lido and Why is it Important?

Lido is a platform that enables Ethereum staking without running a validator node. This means investors can earn staking rewards without locking their funds for an extended period – their stake is represented by the stETH token, which can still be traded or used in DeFi applications.

Sun’s massive deposit is expected to generate passive income of up to $3 million annually, assuming staking rewards remain at current levels.

A Bullish Signal for Ethereum?

This transaction immediately sparked speculation about Ethereum’s future. High-stake moves from major investors typically indicate strong market sentiment and could encourage other institutional players to enter the staking game. If institutions follow Sun’s example, it could lead to a further reduction in ETH’s circulating supply, potentially having a positive effect on price.

The current sentiment towards Ethereum (ETH) is neutral to slightly negative, reflecting the trend shown in the chart. ETH price has dropped to $1,939.25, marking a -0.99% decline in the past 24 hours. This downward trajectory, visible on the monthly chart, suggests that the market is still searching for solid support, while Ethereum’s market capitalization has fallen to $234 billion. With a daily trading volume of $11.6 billion, investor activity remains high, but momentum is not strong enough to reverse the trend. The Fear and Greed Index 1D score of 45 (neutral) indicates that traders are waiting for clearer signals on whether ETH will rebound or continue its downward trajectory.

Despite recent market volatility, Ethereum remains the leader in smart contracts and staking. Sun’s move is a strong signal that confidence in Ethereum endures, and staking will continue to play a crucial role in the network’s future.