Lido DAO’s (LDO) New Analytics Might Deter Hostile Market Environment Despite 18% Weekly Losses

The market’s hostile environment is currently hindering altcoins gaining in the short term. With the broader market down by 2%, LDO losses mounted up to 18% since last week, continuing to end this week with pain for investors in the short term. This led to shaky investor confidence as fear, uncertainty, and doubt plagued the market.

LDO’s underperformance overshadows the platform’s growth over the month. Lido DAO released analytics that shows several aspects that saw increases across the board. 

Lido DAO Experiences Growth In The 2nd Half Of August 

According to Lido’s most recent thread, the platform saw a significant increase in almost every aspect of the network. Total value locked (TVL) saw the most remarkable increase by 4% between August 19th and 26th. LDO staked on the Polygon chain also grew by 25% in the same timeframe.

Lido Analytics: August 19 – 26, 2024

TLDR:
– TVL up 4.72% to $26.98b.
– 28,160 ETH net unstaked.
– 7d stETH APR at 2.80%.
– wstETH on L2 up +0.63% to 186,676 wstETH.
– (w)stETH 7d trading volume up 18.76%.

👇 pic.twitter.com/2k5tZS0TAm

— Lido (@LidoFinance) August 27, 2024

A look at Ethereum, however, 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 valued at almost $71 million marking a serious decrease in staked Ether on the platform. The annual percentage rate has also been on the downtrend as the Ethereum network saw record low gas fees following the market’s general momentum.

Ethereum lending fares better, showing a slight increase despite liquidity pools and restaking activity shrinking by a margin. However, (w)stETH trading volume has increased by nearly 20% since the week prior, which includes both inflow and outflow, showing that the platform still has the throughput to be at par with competitors. 

Lido’s activities on layer 2 blockchains also saw a broad increase in the wstETH bridged. The platform should be able to handle the bearish market sentiment that is present within the current market environment. 

$0.91-$1.1 Trading Range To Stabilize LDO Short-Term

The token’s current position leaves both bulls and bears little to no wiggle room for short-term gains. However, the narrow trading range might bode well for the bulls as market volatility lessens, favoring the latter. 

With this in mind, investors and traders should be optimistic about LDO’s future performance as the relative strength index (RSI) shows that the bulls slowly overtake the bears after a week of bearish activity. 

LDO’s significant correlation to major cryptocurrencies like Bitcoin and Ethereum might be a double-edged sword for the token. With BTC returning to the sub-$60k level and ETH struggling to retest $2.8k, LDO might face more pain in the short term as these cryptocurrencies face hurdles.

Investors and traders should exercise caution on LDO while monitoring the broader market momentum for opportunities. If bullishness returns to the market, a long-term retest of $1.6 is a possibility. 

Featured image from Pexels, chart from TradingView