Following Ethereum whale interest in the Lido Finance Token, LDO, has gained massive momentum over the past week, up 20%. Whalestats recently reported that LDO was one of the most used smart contract tokens among the top 5,000 ETH investors.
While the reason behind the token’s launch may be pretty glaring, the recent surge has raised questions from people wondering if whales are actively accumulating the Lido Finance token.
Whales accumulate LDO?
According to on-chain data, whales are interested in LDO. LookOnChain reported Earlier today, some investors received a huge amount of LDO tokens. As the on-chain data shows, 3.5 million tokens were received by an investor and nearly half a million were sold on the market at an average sale price of $1.37.
9 hours ago, when the price of $LDO went from $1.24 to $1.42, a $LDO investor received $LDO 3.5M ($4.8M) and sold $LDO 500,000 ($685,000 $) with an average selling price of ~$1.37. pic.twitter.com/23vrf7KBOb
— Lookonchain (@lookonchain) January 5, 2023
Although the sum was large enough to move the LDO market, the token is not the most liquid asset. I DO survived the massive sell-off and stayed at a solid price.
Related Reading: Lido DAO shows strength to erupt; Will the down trendline become invalid?
Apart from that, the rapid increase in trading volume is also a point worth mentioning in the accumulation of the liquid staking token. LDO trading volume has increased from $9.3 million earlier this year to $85 million currently.
LDO is gaining momentum
Just a few days ago, Lido Finance overtook TVL (Total Value Locked) Maker DAO to become the largest DeFi-Log related to total locked value. Liquid staking protocol TVL increased from $5 billion to $5.99 billion. Alongside the protocol’s TVL surge, Lido’s LDO token also surged as its TVL surged nearly 20% over the past week.
The reason for the rapid increase in the dynamics of Lido is the Ethereum Mergereflecting the popularity of liquid staking protocols such as Lido finance. After the merger, the total ETH stake in Lido increased by 10% from 4.43 million ETH on September 15, 2022, the date of the merger, to 4.9 million ETH today.
LDO and Crypto Market Overview
Currently, LDO’s momentum still appears to be solid, trading at $1.39 with a trading volume of $83 million. Regardless, LDO is still below its historical all-time high from $11.
LDO price trending at $1.384 | Source: LDOUSDT on TradingView.com
At the time of writing, Bitcoin is currently trading at $16,819 with a 24-hour trading volume of $15 billion. In contrast, Ethereum is currently trading at $1,251, up 0.25%, with a trading volume of $4.9 billion in the last 24 hours.
Featured image from iStock, chart from TradingView
Source: Crypto News Deutsch