- LDO rose by more than 18%, showing a strong correlation with ETH.
- Lido’s TVL hit a new ATH while network activity increased.
About 87% of Lido DAO Token [LDO] holders are in profit, according to information from IntoTheBlock. The post shared by the crypto trading analytics platform also mentioned that the increase was because of LDO’s seven-day performance.
Following a strong price move by $LDO this week, ~87% of LDO addresses are now in profit. pic.twitter.com/3rLodKvK21
— IntoTheBlock (@intotheblock) January 10, 2024
In the last seven days, AMBCrypto noticed that LDO’s price has increased by 18.97%. This performance meant that the token outperformed a lot of altcoins including Solana [SOL] and Ripple [XRP].
LDO rises, same as Lido’s TVL
Though Lido has not had any major developments recently, our investigation showed that the price increase could be linked to Ethereum [ETH]. At press time, ETH’s value was $2,653. This value represents an 18.48% hike— a similar performance to LDO.
The move was proof that tokens associated with the Ethereum blockchain would most likely move in the same direction as ETH. For Lido, its support for Ethereum post-Merge means that it falls into the category.
A look at the Arbitrum [ARB] and Optimism [OP] prices showed that they also followed ETH.
However, LDO’s price was not the only moving metric connected to the Lido Finance ecosystem. Accoridng to AMBCrypto’s analysis of DeFiLlama’s data, Lido’s Total Value Locked (TVL) has been soaring.
As of this writing, the TVL was $24.77 billion. This value was a 19.13% increase within the same period the LDO price climbed to $3.79.
The TVL increase indicates the relevance of the Lido project in the market. It also shows increased activity on protocol built under the Lido protocol while market participants trust the ecosystem for more yield.
Source: DeFiLlama
It is noteworthy to mention that this TVL figure was Lido’s highest since its introduction. Another metric that hit a high point was the Active Addresses. According to Santiment, LDO’s 24-hour Active Addresses reached 1123 on the 11th of January.
The bulls are not gone
Active Addresses show the daily level of interaction or speculation around a token. So, the increase in the metric implies that many addresses participated in LDO transactions. This is considered a bullish signal.
So, if the network activity continues to rise, LDO could head toward $4 in the short term.
Likewise, the Social Dominance climbed to 0.40% on the same day. Social Dominance measures the unique social volume linked to a project. For Lido, the increase signifies interest in the project. However, the Social Dominance had dropped to 0.25%.
This indicates that LDO was nowhere near its local top. So, the price action can continue its impressive performance going forward.
Source: Santiment
Realistic or not, here’s LDO’s market cap in ETH terms
Regardless of the recent movement, LDO’s price might pull back. However, investors should keep an eye on the ETH price action.
If the altcoin hits $3,000 as predicted in some corners, LDO might hit a new All-Time High (ATH).
