The crypto market is currently in a slump, with altcoins struggling to gain traction. Lido DAO (LDO) is no exception, experiencing an 18% drop in price over the past week. This decline has shaken investor confidence, but there’s a glimmer of hope.
Lido DAO Shows Signs of Growth
Despite the overall market downturn, Lido DAO has seen some positive developments in the second half of August. Here’s a breakdown:
- Total Value Locked (TVL) Up: Lido’s TVL increased by 4% between August 19th and 26th.
- Polygon Staking Growth: The amount of LDO staked on the Polygon chain jumped by 25% during the same period.
- Increased Trading Volume: (w)stETH trading volume saw a nearly 20% increase, indicating continued platform activity.
While the platform has experienced growth in some areas, there are also some challenges:
- Ethereum Outflow: Lido saw a net outflow of 28,160 ETH, worth almost $71 million, indicating a decrease in staked Ether on the platform.
- Lower APR:
The annual percentage rate has been declining due to record low gas fees on the Ethereum network.
LDO’s Short-Term Outlook
LDO is currently trading in a narrow range of $0.91 to $1.1, leaving little room for short-term gains. However, this stability could benefit bulls as market volatility decreases.
The relative strength index (RSI) suggests that bulls are slowly regaining control after a week of bearish activity. This could be a positive sign for LDO’s future performance.
The Bigger Picture
LDO’s price is heavily influenced by the performance of major cryptocurrencies like Bitcoin and Ethereum. With Bitcoin struggling to break through the $60k level and Ethereum facing resistance at $2.8k, LDO may face further short-term challenges.
Investors and traders should exercise caution and monitor the broader market trends for potential opportunities. If the market turns bullish, LDO could potentially retest the $1.6 level in the long term.
