Lido DAO’s (LDO) New Analytics Might Deter Hostile Market Environment Despite 18% Weekly Losses
The hostile market environment is currently hampering altcoins’ near-term gains. With the broader market down 2%, LDO’s losses compound Crude oil prices have risen 18% since last week, continuing to end the week with pain for short-term investors. This has shaken investor confidence as fear, uncertainty and doubt spread through the market.
LDO’s weak performance overshadowed the platform’s growth during the month. Lido DAO released analytics showing several areas that saw increases across the board.
Lido DAO sees growth in second half of August
According to the latest report by Lido stringThe platform saw a significant increase in almost every aspect of the network. Total Value Locked (TVL) saw the largest increase of 4% between August 19 and 26. LDO staked on the Polygon chain also grew by 25% in the same time frame.
Lido Analysis: August 19 – 26, 2024
Talder:
– The total value of fixed assets increased by 4.72% to $26.98 billion.
– 28,160 ETH net uncirculated.
– 7 days stETH APR of 2.80%.
– The price of wstETH on L2 increased by +0.63% to 186,676 wstETH.
– (w)stETH 7d trading volume increased by 18.76%.— Lido (@LidoFinance) August 27, 2024
However, a look at Ethereum reveals the other side of the coin. The platform saw a net outflow of 28,160 ETH, which, at the current price of ETH, is equivalent to nearly $71 million, representing a significant drop in the amount of ETH held on the platform. The annual percentage rate was also on a downward trend as the Ethereum network saw record low gas fees following the general market momentum.
Ethereum lending performed better, showing a slight increase despite liquidity pools and reinvestment activity shrinking marginally. However, (w)stETH trading volume increased by around 20% since the previous week, which includes both inflows and outflows, indicating that the platform still has enough throughput to be on par with competitors.
Lido’s activity on layer 2 blockchains has also seen a massive increase in the amount of wstETH tied up. The platform should be able to handle the bearish market sentiment present in the current market environment.
Trading range between $0.91 and $1.1 to stabilize the Lebanese pound exchange rate in the short term
The current status of the token leaves no room for both bullish and bearish investors to make short-term gains. However, the narrow trading range could bode well for bullish investors as market volatility declines, favoring bearish investors.
With this in mind, investors and traders should be optimistic about the future performance of LDO as the Relative Strength Index (RSI) shows that bulls are slowly outpacing bears after a week of bearish activity.
The high correlation between LDO and major cryptocurrencies like Bitcoin and Ethereum could be a double-edged sword for the token. With BTC retracing back below $60k and ETH trying to retest $2.8k, LDO could face more pain in the near term as these cryptocurrencies face hurdles.
Investors and traders should be cautious about LDO while monitoring the broader market momentum for opportunities. If the bullish trend returns to the market, a retest of the $1.6 level in the long term is likely.
Featured image by Pexels, chart by TradingView
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