Lido DAO (LDO) is a decentralized autonomous organization that provides liquid staking solutions for multiple blockchain networks, such as Ethereum, Solana, Polygon, Polkadot, and Kusama. LDO is the native token of the platform, which serves as a governance and utility token. LDO holders can participate in the decision-making process of the platform, as well as stake their tokens to earn rewards and access various DeFi services.
Current Price Analysis
As of 3 Oct 2023, the price of LDO is $1.79. This represents a 1.18% increase in the last 24 hours and a -3.75% decrease in the past 7 days. The current market capitalization of LDO is $1.59 billion, ranking it at #36 among all cryptocurrencies. The 24-hour trading volume of LDO is $68.73 million, and the circulating supply is 890 million out of a total and maximum supply of 1 billion.
The following chart shows the LDO/USD price movement in the last 7 days:
In a four-hour time frame, The price is making a bullish bat pattern. Currently, the price is getting rejected from the C leg to complete the D leg. Now A downward movement is expected from here.
As seen from the chart, LDO has been trading in a narrow range between $1.75 and $1.87, with some minor fluctuations. The price has been mostly following the trend of the overall crypto market, which has been experiencing a slight correction after reaching new highs in late September. The price has also been influenced by the news and developments related to Lido and its supported networks.
Weekly Price Analysis
The weekly price analysis of LDO reveals some interesting patterns and events that have affected the price movement of the token. The following chart shows the LDO/USD price movement in the last 30 days:
As seen from the chart, LDO has been on a gradual uptrend since mid-September, when it reached a monthly low of $1.27 on 21 Sep. The price then surged to a monthly high of $2.21 on 16 Oct, marking a 74% increase in less than a month. The price rally was driven by several factors, such as:
- The launch of support for Kusama liquid staking on 18 Oct, which allowed KSM holders to stake their tokens on Lido and receive stKSM tokens in return, which can be used in various DeFi platforms. The integration was made possible through a partnership with the Moonriver Network, a protocol that enables compatibility between Kusama and Ethereum. The announcement of the launch was met with positive feedback from the community and increased the demand for LDO tokens
- The increase in the total value locked (TVL) on the Lido platform, which reached a new all-time high of $16.08 billion on 22 Oct, according to Defi Llama. The TVL represents the amount of assets that are staked or deposited on the platform, and it reflects the popularity and trust of the platform among users. The TVL growth was mainly driven by the rising number of staked ETH, which reached over 1.3 million on 22 Oct, according to Lido. This means that Lido holds more than 10% of the total ETH staked on the Ethereum 2.0 network, which is a significant achievement for the platform
- The rising popularity of liquid staking in the cryptocurrency market, which is a new trend that allows users to stake their tokens and receive liquid tokens in exchange, which can be used in other DeFi protocols to earn additional yields. Liquid staking also solves some of the drawbacks of traditional staking, such as the lack of liquidity, the risk of slashing, and the long lock-up periods. Liquid staking is seen as a way to enhance the capital efficiency and utility of staked assets, and Lido is one of the leading platforms that offer this service for multiple networks
However, the price of LDO also faced some downward pressure in the last week, due to some factors, such as:
- The market-wide correction that occurred on 20 Oct, when the crypto market experienced a sharp drop in prices, following the news of China’s central bank banning all cryptocurrency transactions and declaring them illegal. The news triggered a wave of panic selling and fear among investors, which affected most of the crypto assets, including LDO. The price of LDO dropped by 13% on that day, from $2.08 to $1.81
- The termination of development and technical support of Lido on Solana, which was announced on 16 Oct. The Lido team stated that due to the lack of demand and adoption of Lido on Solana, they decided to discontinue the project and focus on other networks. They also advised the users to unstake their funds via the UI before 4 Feb 2024. The announcement was met with disappointment and criticism from some of the community members, who questioned the decision and the future of Lido.
The future outlook of LDO depends on several factors, such as the performance of the crypto market, the development and innovation of the Lido platform, the adoption and demand of liquid staking, and the competition and regulation in the industry.
Some of the potential catalysts and challenges for LDO are:
- The launch of support for Polkadot liquid staking, which is expected to happen soon, according to the Lido roadmap. Polkadot is one of the most anticipated and popular blockchain networks, which aims to enable interoperability and scalability among different blockchains. Polkadot is also preparing for its parachain auctions, which will allow projects to bid for a slot on the network and launch their own customized blockchains. The launch of Lido for Polkadot will allow DOT holders to stake their tokens on Lido and receive stDOT tokens in return, which can be used in various DeFi platforms. This will increase the utility and value of LDO tokens, as well as attract more users and liquidity to the platform.
- The integration and partnership with other DeFi platforms and protocols, which will expand the use cases and opportunities for LDO and its liquid tokens. For example, Lido recently partnered with Apricot Finance, a lending platform on Solana, to form a lending marketplace for SOL. This allows SOL holders to stake their tokens on Lido and receive stSOL tokens, which can then be used as collateral to borrow other assets on Apricot Finance. This creates a win-win situation for both platforms, as it increases the demand and supply of both tokens, as well as the yields and rewards for the users. Lido is also working with other DeFi projects, such as Curve, SushiSwap, Yearn, and Aave, to provide more liquidity and incentives for LDO and its liquid tokens.
- The competition and innovation in the liquid staking space, which will challenge and motivate Lido to improve its platform and services. Liquid staking is a relatively new and emerging trend in the crypto market, and there are several other platforms and projects that offer similar or alternative solutions for different networks. For example, StakeWise, Rocket Pool, and Ankr are some of the competitors of Lido in the Ethereum liquid staking space, while Bifrost, StaFi, and LiquidStake are some of the competitors of Lido in the Polkadot and Kusama liquid staking space. These platforms have their own advantages and disadvantages, and they are constantly developing and innovating to attract more users and assets. Lido will have to keep up with the competition and innovation, and provide the best service and value for its users and token holders.
- The regulation and compliance in the crypto industry, which will affect the legal and operational status of Lido and its tokens. Crypto regulation is a complex and evolving issue, and different countries and jurisdictions have different rules and standards for crypto-related activities and entities. Lido, as a decentralized autonomous organization, may face some challenges and uncertainties in terms of its legal recognition, taxation, governance, and liability. Lido may also have to comply with the anti-money laundering (AML) and know-your-customer (KYC) requirements of some of the platforms and protocols that it integrates with, which may affect the privacy and security of its users and token holders. Lido will have to monitor and adapt to the changing regulatory environment, and ensure that it operates in a transparent and compliant manner.
Here are some of the latest news and updates related to Lido and its tokens:
- On 29 Oct, Lido announced that it has integrated with [Zapper], a DeFi dashboard that allows users to track and manage their DeFi portfolios across different platforms and protocols. The integration enables users to view their Lido staked assets on Zapper, as well as access various DeFi services, such as swapping, pooling, and farming.
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