- Lido staked all its ETH treasury holdings as activity and revenue on the protocol rose
- LDO’s price hiked on the back of bullish momentum
Ever since the Shanghai Upgrade, the interest in staking ETH has gradually increased. Liquid Staking Derivatives have benefited the most from the emerging interest in staking, with Lido[LDO] dominating the sector.
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Lido shows faith in stETH
Lido Finance has recently demonstrated a reinforcement of its conviction in staking through the execution of proposal 161. This action involved staking all of its ETH reserves, totaling 20,300 ETH, into stETH. As a result, Lido Finance’s treasury breakdown consists of 20.7% in stETH (equivalent to $63M) and 75.7% in LDO (equivalent to $231M).
With this adjustment, Lido Finance now holds a balance of $304.7M when considering $LDO and $72.5M when excluding $LDO. As a result, they have become the 13th largest holders with a holding of 33k stETH.
Source: Dune Analytics
The staking of all ETH reserves by Lido Finance does not alter the tokenomics of the stETH token. While it does contribute to a potentially more sustainable treasury for Lido DAO and a modest increase in the TVL (Total Value Locked) of the protocol, it may not necessarily have a direct impact on the token’s price. The implications of this action remain to be seen.
Lido protocol’s recent action could further enhance the sentiment surrounding stETH. Based on data from Santiment, the weighted sentiment, which gauges the overall perception of a cryptocurrency within the social sphere, projected significant improvement.
Source: Santiment
On the protocol side, it was business as usual for Lido. According to Token Terminal’s data, the number of active users on the protocol rose by 20.3% over the past week. Subsequently, the revenue generated by Lido also hiked by 7.5%
Bulls take a liking to LDO
Similarly, like the protocol, LDO also managed to garner interest from investors in the last few weeks. After testing the support level of $1.62 on the 15th of January, the price of LDO surged by 35.23%Â till it hit the $2.208 level on 3 June. The price saw multiple high highs and high lows during this period, establishing a bullish trend.
If LDO sustains its current momentum and undergoes a retest of the weakened $2.506-resistance level, the likelihood of LDO ascending and surpassing the resistance will be further amplified.
Realistic or not, here’s LDO’s market cap in BTC’s terms
Furthermore, the RSI and CMF were at 66.5 and o.11, respectively, indicating that the money flow and momentum were with the bulls at the time of writing.
Source: Trading View
