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Tag: LDO

  • Lido DAO News: Will LDO Price Crash to 0 in July?

    Lido DAO News: Will LDO Price Crash to 0 in July?

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    In this article, we’ll try to break down what Lido DAO is and the factors behind the price decrease of its LDO token. Let’s take a look at the LDO price prediction article in more detail.

    What is Lido DAO (LDO) Token?

    Lido DAO (Decentralized Autonomous Organization) is a major force in the cryptocurrency world, especially within liquid staking protocols. It functions as a decentralized body that oversees these protocols by making essential decisions, such as setting fees, assigning node operators, and choosing oracles. These decisions are driven by the voting power of LDO token holders, who play a key role in the governance of the DAO.

    How has the LDO Price Moved Recently?

    LDO/USD Daily Chart- TradingView

    As of now, the price of Lido DAO Token stands at $1.605433, accompanied by a 24-hour trading volume of $303.79 million. With a market cap of $1.43 billion, Lido DAO Token holds a market dominance of 0.07%. Over the past 24 hours, the LDO price has seen a decrease of -4.70%.

    Lido DAO Token reached its peak price on August 20, 2021, hitting an all-time high of $7.28. Conversely, its lowest recorded price occurred on June 18, 2022, plummeting to $0.40454. Since reaching its ATH, the lowest price experienced was $0.40454 (cycle low), with the highest rebounding to $4.00 (cycle high). Presently, market sentiment towards Lido DAO Token leans bearish, as indicated by a Fear & Greed Index score of 27 (Fear).

    Regarding supply dynamics, Lido DAO Token currently has a circulating supply of 892.32 million out of a maximum supply of 1.00 billion LDO tokens. The yearly supply inflation rate stands at a modest 1.45%, resulting in the creation of 12.76 million LDO tokens over the past year. These metrics underscore the token’s controlled inflationary model and its impact on market dynamics.

    Will Lido DAO (LDO) Price Crash to 0?

    The prospect of Lido DAO (LDO) crashing to zero in July seems highly improbable given several key factors. Despite a challenging year with a 14% decline in price, LDO maintains high liquidity supported by its market cap of $1.43 billion. The token’s controlled inflation rate of 1.45% annually also indicates a stable supply management strategy, contrasting sharply with volatile assets prone to rapid devaluation.

    Moreover, LDO has demonstrated resilience within the cryptocurrency market, outperforming 88% of the top 100 crypto assets over the past year, including stalwarts like Bitcoin and Ethereum. Although currently trading below its 200-day simple moving average, suggesting a bearish trend, the token has shown periodic recovery potential with 12 green days in the last 30, reflecting intermittent investor optimism amidst market fluctuations.

    Despite being down 78% from its all-time high of $7.28, the significant decline does not imply an impending crash to zero. Market sentiment remains cautious, indicated by a Fear & Greed Index score of 27, but not outright panic. The recent performance trends and the token’s historical resilience suggest that while further declines are possible, a crash to zero appears unlikely in the immediate future. Investors should monitor market dynamics closely, particularly support levels and broader market sentiment, to gauge LDO’s trajectory moving forward in July and beyond.

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  • Crypto Fund Exits BLUR For Lido And IMX—Endorsing DeFi?

    Crypto Fund Exits BLUR For Lido And IMX—Endorsing DeFi?

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    According to Lookonchain data, Sigil, a fund in Gibraltar, has exited BLUR, one of this week’s top-performing tokens, for Lido DAO’s LDO, and IMX, the native token Immutable X–a layer-2 scaling solution primarily dedicated to NFT trading.

    Sigil Fund Sells BLUR For IMX And LDO 

    On November 24, Lookonchain, a crypto analytics platform, noted that Sigil sold 1.55 million BLUR for 807,799 IMX, worth roughly $1.14 million, and 210,905 LDO, trading at $540,000, at spot rates. The exchange was made via multiple transactions and done on-chain.

    The swap comes roughly three days after Sigil withdrew 3.1 BLUR from OKX, a cryptocurrency exchange. Surprisingly, the fund is exiting BLUR when the token has dominated performance in the last few trading days. 

    To quantify, the token has more than doubled this week alone, surging to register new H2 2023 highs above $0.60. BLUR is already up 330% from its 2023 lows and continues to edge higher on rising trading volume.

    BLUR price trending upward on the daily chart | Source: BLURUSDT on OKX, TradingView

    The Gibraltar-based crypto investment fund’s rotation from BLUR into core governance tokens of Lido DAO and Immutable X comes when there is FOMO around the 300 million BLUR airdrop in Season 2. Still, it is not immediately clear what might have advised the fund to exit BLUR–and not simply ride the current ride–for LDO and IMX. 

    In retrospect, the shift could be an endorsement of decentralized finance’s (DeFi) resilience and inherent growth prospects. The rotation of funds into DeFi tokens could also signify a focus on backing decentralized ecosystem building rather than speculative NFT mania, as is currently the case with BLUR, which is rapidly rising, spurred by the Season 2 airdrop.

    LDO and IMX Are Key For DeFi And NFT

    As of November 2023, Lido DAO and Immutable X are some of the core platforms driving crypto and DeFi. Lido DAO plays a crucial role in Ethereum staking, while Immutable X offers a secure NFT trading infrastructure. Though recent troubles at FTX and other CeFi actors like FTX’s partner, Alameda Research, continue to cap upsides, Sigil’s allocation change is an endorsement for DeFi.

    In the future, it is not immediately clear whether LDO and IMX prices will edge higher. For now, it remains on an uptrend but is generally volatile and not galloping higher like BLUR. The token is up 80% from October 2023 lows at press time. Meanwhile, IMX is extending gains at 2023 highs, looking at price action in the daily chart.

    Feature image from Canva, chart from TradingView

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  • Lido Finance Fees Exploding, Should Comparatively Low Revenue Be A Concern?

    Lido Finance Fees Exploding, Should Comparatively Low Revenue Be A Concern?

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    The total amount of Ethereum (ETH) staked on Lido Finance, one of the many liquidity staking protocols available, has risen steadily over the past few years. Surprisingly, revenue accrued by the platform (compared to staking rewards distributed) remains comparatively low. 

    Lido Finance Revenue Isn’t Growing As Fast As Expected

    Looking at Token Terminal data shared on October 19, the blockchain analytic platform observed that while staking rewards paid, counted as “fees” by Lido Finance grew from less than $10 million in early 2021 to over $60 million in June 2023, revenue has grown at a much slower pace. To illustrate, Lido Finance’s average revenue is roughly less than $5 million during this period.

    Lido Finance fees versus revenue| Source: Token Terminal

    Overall, Lido Finance is a liquidity staking protocol that supports the staking of multiple proof-of-stake (PoS) coins like Ethereum (ETH) without necessarily locking them up. Users can concurrently earn staking rewards while accessing their hard-earned ETH–or any other coin supported.

    LDO price on October 19| Source: LDOUSDT on Binance, TradingView
    LDO price on October 19| Source: LDOUSDT on Binance, TradingView

    The protocol issues another derivative, stETH, for every ETH staked to achieve this. This token can be freely traded on exchanges. It can even be used as collateral for users keen on taking trustless loans on supported platforms.

    Ethereum recently shifted to be a proof-of-stake blockchain to be greener and conserve the environment. This transition was a boon for protocols that supported the first smart contract platform to confirm transactions and remain secure, especially after the activation of Shanghai in April 2023. 

    The Shanghai upgrade allowed Ethereum validators to withdraw their staked ETH for the first time, permitting them to use alternatives, of which Lido Finance, looking at total value locked (TVL), was preferred. As of October 19, Lido Finance had a TVL of $13.913 billion, most of it being assets on Ethereum. 

    Lido Finance TVL| Source: DeFiLlama
    Lido Finance TVL| Source: DeFiLlama

    Ethereum Centralization Concerns: How Will This Be Addressed?

    Lido Finance makes staking more accessible to everyone while concurrently enhancing liquidity. However, the revenue generated appears low versus the amount of staking rewards distributed to stakers, most of whom are from Ethereum. Part of the revenue the network generates is also distributed to LDO holders and node operators. Whether the liquidity staking protocol plans to increase the 10% fee charged to increase revenue earned remains to be seen.

    Presently, there are concerns that Lido Finance’s role on Ethereum could lead to centralization. Ethereum has been accused of being “centralized,” mainly in how it is built. Critics assert that the reliance on its co-founder, Vitalik Buterin, for endorsement and guidance could slow down development in the future.

    Feature image from Canva, chart from TradingView

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