Financing of the Lido [LDO]: Assess what went wrong with this token in the last seven days
Financing of the Lido [LDO], through a Twitter feedupdated community members on the performance of the DeFi protocol between June 17 and June 24.
According to the feed, Lido recorded a 13% jump in its Total Value Locked (TVL) during the reporting period, bringing its TVL to $5.22 billion. However, while the rest of the market involved in Liquid Ethereum Staking prior to the launch of ETH 2.0 saw growth of 2.35%, Lido saw slow growth of 0.04%” due to the lower cost of staking. ‘purchase of stETH on the secondary markets’.
Among other updates provided to members, Lido also confirmed that there has been a positive daily ETH balance on the protocol since June 18.
According to data from CoinMarketCap, the protocol’s native token, YES, also saw price growth of 16% during the period under review. So how has this token fared well during this time?
The cover is off
On June 17, one LDO token stood at $0.54. The price of the LDO token rose 16% to hit a high of $0.63 on June 24. During this period, the price per LDO token reached $0.69 on June 21. However, a bearish correction followed, forcing the price lower. The market capitalization has increased by 17% in a similar time frame.
Although the price saw a slight rise between June 17 and June 24, the movements of the Relative Strength Index (RSI) and the Money Flow Index (MFI) revealed significant bearish signals. The RSI and MFI were in an oversold position. However, as the price rose, the RSI and MFI embarked on a similar advance. Still housed below the neutral 50 post, the RSI was pegged at 40.31 at the time of writing. The MFI, on the other hand, does better. It scored a spot at 69.94 at press time.
Although the price has gone up…
…between 17 June and June 24, on-chain analysis of the LDO token did not reveal any overall growth. For example, during the period under review, the number of new addresses created on the network fell by 21%.
Similarly, after registering a record transaction volume of 39.05 million on June 18, it continued to decline by 74% over the next six days.
Additionally, daily active addresses that transacted on the LDO during the reporting period peaked at 309 on June 21. However, in the three days that followed, the aforementioned figure dropped by 22%.
Additionally, the whales weren’t excited enough about the LDO token’s price rise between June 17 and June 24, to speed up transactions. As a result, the number of whale trades over $100,000 steadily decreased from 27 on June 18 to 6 on June 24. Similarly, the number of whale trades over $1 million fell from three on June 18 to zero on June 24.