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Crypto Fund Exits BLUR For Lido And IMX—Endorsing DeFi?

According to Lookonchain data, Sigil, a fund in Gibraltar, has exited BLUR, one of this week’s top-performing tokens, for Lido DAO’s LDO, and IMX, the native token Immutable X–a layer-2 scaling solution primarily dedicated to NFT trading.

Sigil Fund Sells BLUR For IMX And LDO 

On November 24, Lookonchain, a crypto analytics platform, noted that Sigil sold 1.55 million BLUR for 807,799 IMX, worth roughly $1.14 million, and 210,905 LDO, trading at $540,000, at spot rates. The exchange was made via multiple transactions and done on-chain.

The swap comes roughly three days after Sigil withdrew 3.1 BLUR from OKX, a cryptocurrency exchange. Surprisingly, the fund is exiting BLUR when the token has dominated performance in the last few trading days. 

To quantify, the token has more than doubled this week alone, surging to register new H2 2023 highs above $0.60. BLUR is already up 330% from its 2023 lows and continues to edge higher on rising trading volume.

BLUR price trending upward on the daily chart | Source: BLURUSDT on OKX, TradingView

The Gibraltar-based crypto investment fund’s rotation from BLUR into core governance tokens of Lido DAO and Immutable X comes when there is FOMO around the 300 million BLUR airdrop in Season 2. Still, it is not immediately clear what might have advised the fund to exit BLUR–and not simply ride the current ride–for LDO and IMX. 

In retrospect, the shift could be an endorsement of decentralized finance’s (DeFi) resilience and inherent growth prospects. The rotation of funds into DeFi tokens could also signify a focus on backing decentralized ecosystem building rather than speculative NFT mania, as is currently the case with BLUR, which is rapidly rising, spurred by the Season 2 airdrop.

LDO and IMX Are Key For DeFi And NFT

As of November 2023, Lido DAO and Immutable X are some of the core platforms driving crypto and DeFi. Lido DAO plays a crucial role in Ethereum staking, while Immutable X offers a secure NFT trading infrastructure. Though recent troubles at FTX and other CeFi actors like FTX’s partner, Alameda Research, continue to cap upsides, Sigil’s allocation change is an endorsement for DeFi.

In the future, it is not immediately clear whether LDO and IMX prices will edge higher. For now, it remains on an uptrend but is generally volatile and not galloping higher like BLUR. The token is up 80% from October 2023 lows at press time. Meanwhile, IMX is extending gains at 2023 highs, looking at price action in the daily chart.

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Lido Finance Fees Exploding, Should Comparatively Low Revenue Be A Concern?

The total amount of Ethereum (ETH) staked on Lido Finance, one of the many liquidity staking protocols available, has risen steadily over the past few years. Surprisingly, revenue accrued by the platform (compared to staking rewards distributed) remains comparatively low. 

Lido Finance Revenue Isn’t Growing As Fast As Expected

Looking at Token Terminal data shared on October 19, the blockchain analytic platform observed that while staking rewards paid, counted as “fees” by Lido Finance grew from less than $10 million in early 2021 to over $60 million in June 2023, revenue has grown at a much slower pace. To illustrate, Lido Finance’s average revenue is roughly less than $5 million during this period.

Lido Finance fees versus revenue| Source: Token Terminal

Overall, Lido Finance is a liquidity staking protocol that supports the staking of multiple proof-of-stake (PoS) coins like Ethereum (ETH) without necessarily locking them up. Users can concurrently earn staking rewards while accessing their hard-earned ETH–or any other coin supported.

LDO price on October 19| Source: LDOUSDT on Binance, TradingView

The protocol issues another derivative, stETH, for every ETH staked to achieve this. This token can be freely traded on exchanges. It can even be used as collateral for users keen on taking trustless loans on supported platforms.

Ethereum recently shifted to be a proof-of-stake blockchain to be greener and conserve the environment. This transition was a boon for protocols that supported the first smart contract platform to confirm transactions and remain secure, especially after the activation of Shanghai in April 2023. 

The Shanghai upgrade allowed Ethereum validators to withdraw their staked ETH for the first time, permitting them to use alternatives, of which Lido Finance, looking at total value locked (TVL), was preferred. As of October 19, Lido Finance had a TVL of $13.913 billion, most of it being assets on Ethereum. 

Lido Finance TVL| Source: DeFiLlama

Ethereum Centralization Concerns: How Will This Be Addressed?

Lido Finance makes staking more accessible to everyone while concurrently enhancing liquidity. However, the revenue generated appears low versus the amount of staking rewards distributed to stakers, most of whom are from Ethereum. Part of the revenue the network generates is also distributed to LDO holders and node operators. Whether the liquidity staking protocol plans to increase the 10% fee charged to increase revenue earned remains to be seen.

Presently, there are concerns that Lido Finance’s role on Ethereum could lead to centralization. Ethereum has been accused of being “centralized,” mainly in how it is built. Critics assert that the reliance on its co-founder, Vitalik Buterin, for endorsement and guidance could slow down development in the future.

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Lido (LDO) Price Inks Gains Alongside TVL Rise – What Traders Should Expect

Lido DAO (LDO), the driving force behind the revolutionary liquid staking protocol for Ethereum (ETH), has displayed an impressive 7.41% ascent in its Total Value Locked (TVL) over the course of the last seven days. 

This robust surge in TVL has positioned Lido Finance as a prominent contender in the decentralized finance (DeFi) landscape, illustrating its resilience amidst a fluctuating market.

According to the latest data from DeFiLlama, Lido Finance’s TVL witnessed a notable augmentation, securing its place as the most substantial growth among the top five DeFi protocols. This feat underlines Lido’s exceptional capacity to adapt and expand, distinguishing itself from its counterparts during a pivotal time for the DeFi sector.

Despite the tumultuous price fluctuations that have characterized the altcoin realm, Lido’s TVL growth stood unwavering. This achievement can be attributed to a discernible surge in Ethereum deposits within the protocol over the reviewed timeframe.

Lido’s ETH Deposits Surge Amidst Uncertainty

The primary driver behind Lido’s remarkable TVL surge over the past week was a substantial influx of ETH deposits into the platform. Even in the face of significant market price gyrations, Ethereum holders exhibited a commendable degree of confidence in Lido’s liquid staking protocol. 

Recent technical analysis highlights that the platform saw a cumulative total of 185,500 ETH deposits in the last seven days alone. This not only positioned Lido as a beacon of stability in a tempestuous market but also secured its status as the go-to protocol for net new Ethereum deposits.

Insights And Outlook For Lido Finance

Lido Finance’s recent achievements underscore its growing prominence in the DeFi realm. With a current price of $1.66 according to CoinGecko, the platform’s token’s resilience (LDO) is further affirmed by its 24-hour rally of 5.1%. Over the span of the last seven days, Lido has achieved gains of 1.4%, a testament to its unwavering performance even in challenging times.

As the broader cryptocurrency landscape continues to evolve, Lido’s success serves as a reminder of the power of innovative DeFi solutions. By facilitating liquid staking for Ethereum, Lido DAO not only appeals to those seeking rewards from staking but also embodies the ethos of adaptability that is vital for thriving in the ever-changing world of decentralized finance.

As Lido outperforms its peers in TVL growth and garners a significant influx of ETH deposits, it proves that adaptability and reliability are the cornerstones of sustainable success in the dynamic realm of decentralized finance.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from PortalCripto

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Lido DAO (LDO) Token Outperforms Market With 62% Weekly Gains

The crypto market is still highly unpredictable and volatile in January 2023. The market generally recorded a 0.3% decrease in the last 24 hours. But as most of the assets falter, some tokens record exponential gains. LDO, the governance token of the Lido DAO network, has increased in value in the past week. The token is up by 62.83% in weekly gains and currently trading at $1.99, a 1.31% increase in 24 hours.  

The Lido DAO project is a staking platform where users can stake their ETH tokens. The platform also offers DeFi lending services and requires no minimum deposits. With different financial services and the flexibility of its platform, this upsurge shows increased adoption by users for a variety of purposes. 

Despite the uncertain times in the crypto space Lido DAO (LDO) has continued to perform well since the turn of the year. Some factors are behind this recent resurgence and will influence how long the bullish momentum will last.

LDOUSD_2023

Why Is Lido DAO (LIDO) On The Rise?

Some parameters are responsible for the price surge in Lido DAO. A Twitter user states that the Lido finance native token has soared nearly 60% in the last week. The user attributed this to Ethereum’s upcoming Shanghai fork. This update will enable users to withdraw their staked ETH tokens.

Secondly, BitForex announced the listing of LDO on the exchange. This listing has increased the project’s scope and is partly responsible for the price increase noted in the token. 

However, Twitter user John Cook has expressed pessimism about Lido DAO’s newfound price momentum. In his tweet on January 8, he referred to the seven-day rise of the token as a pump-and-dump. He also alleged that the project was ripping off retail investors and spending more on marketing costs than engineering. 

Despite his protests, the LDO token remains among the top gainers this week. The price surge has seen Lido DAO become the largest Decentralized Finance protocol in the world. The project has a total locked value above $6.9 billion.

Can The Bulls Sustain The Rally?

LDO token is currently in an uptrend on the chart, with the formation of simultaneous green candles. The support levels are $1.6647, $1.7561, and $1.8495. Its resistance levels are $2.03, $2.13, and $2.22. 

LDO is currently trading above its 50-day and 200-day Simple Moving Averages. These two indicators are showing a buy signal at the moment. Therefore, it implies that the token’s short-term and long-term price movement is bullish.

The Relative Strength Index (RSI) indicator indicates a buy signal. With the oversold region below 30 and the overbought region above 70, the current RSI value of the token is 82.22. Traders will likely take long positions in the market.

The MACD (Moving Average Convergence/Divergence) is well above its signal line and shows divergence. The signal is also a buy but might be for the short term. LDO is still off its ATH (all-time high) value of $11.00. The token will likely continue on its ascent as more investors buy into the project.

If a digital asset’s price decreases by 50%, it will need to rally to 100% to return to its former value. This feat might be tasking for memes and altcoins to accomplish. Investors must realize that altcoins are more volatile than large-cap cryptocurrencies like Bitcoin.

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Lido DAO Shows Strength To Breakout; Will The Downtrend Line Be Invalidated?

  • LDO price shows strength for the first time after post-merge.
  • LDO bounces from the downtrend, hoping to end its bearish run as the price eyes a possible breakout from the downtrend line. 
  • The price of LDO shows bullish signs as price trades below 50 and 200 Exponential Moving Averages (EMA) with good volume. 

The price of Lido DAO (LDO) has been one of the best performances before the “Ethereum Merge,” outperforming the market as the price rallied to an all-time high of $3 against tether (USDT). Although the crypto market faced a new drawback as Bitcoin (BTC) price dropped from a region of $19,000 to $18,100 as the Consumer Price Index (CPI) suggests an increase in inflation affecting the price of BTC negatively with altcoins affected, with recovery from BTC altcoins like Lido DAO showed some strength as the aim to begin a rally. (Data from Binance)

Lido DAO (LDO) Price Analysis On The Weekly Chart

Although the crypto market experienced a sharp decline due to the CPI news, the market appeared to be manipulated as Bitcoin’s (BTC) price dropped from $19,200 to $18,200 in hours. The market quickly recovered as most altcoins began to show strength, with LDO looking to breakout of its downtrend that has made the price become crippled to rally.

With the current rise in the value of Bitcoin Dominance (BTC.D) after a long while, it is still unclear how the current price bounce after the price decline will be sustained. With BTC.D rising, most altcoins will suffer an increased price decline when BTC retraces.

Uptober has been a good month for some altcoins, with many expecting such good moments for LDO after the token returned to the ashes after “Ethereum Merge” was successful.

The price of LDO, after the rejection at $3, has seen for of a downtrend than an uptrend as the price has retained its bearish structure despite showing a little glimpse of price bounce to $2.2 but the price face more sell-off as the price declined to a region of $1 before bouncing off. 

Weekly resistance for the price of LDO – $2.2.

Weekly support for the price of LDO – $1.

Price Analysis Of LDO On The Daily (1D) Chart
Daily LDO Price Chart | Source: LDOUSDT On Tradingview.com

The daily timeframe for the price of LDO looks good, showing incredible strength as the price trades below the 50 Exponential Moving Average (EMA), acting as resistance for the price of LDO.

LDO’s price currently trades at $1.3 as the price prepares to breakout the descending triangle it has formed. A breakout to the upside could signal a huge rally to the high of $2.2.

Daily resistance for the price of LDO – $2.2.

Daily support for the price of LDO – $1.

Featured Image From zipmex, Charts From Tradingview 

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Lido DAO (LDO) Struggles At $1.8 After Ethereum Merge, What Next?

Lido DAO (LDO) showed so much strength as the price rallied from $0.5 to a region of $3, creating a new all-time high against tether (USDT) ahead of the anticipated “Ethereum Merge.” Lido DAO (LDO) benefited from the relief bounces across the crypto market as it continues to top the chart week in and week out but has since struggled after the merge. (Data from Binance)

Lido DAO (LDO) Token Price Analysis On The Daily Chart 
Daily LDO Price Chart Analysis | Source: LDOUSDT On Tradingview.com

LDO saw a decline in price from $3 to $1.8, setting its price up for a new all-time high despite the difficult market conditions. The price of LDO has since struggled to discover the mojo that helped LDO outperform so many altcoins, as many are confused if it is out of steam.

The price of LDO on the daily chart faced resistance at $2.2 as the price got rejected severally. LDO’s price formed a symmetric triangle as the price continued to range with two options available; an uptrend continuation or a break to the downside to test lower support.

For LDO’s price to restore its bullish move, the price needs to break out of the triangle and rally to the upside. With good volume, the LDO price would have to break and hold above $2.2, acting as strong resistance preventing the price from the upside. If the price of LDO fails to break to the upside, we would expect the price of LDO to retest the support area at $1.4-$1.

Daily resistance for the price of LDO – $2.2.

Daily support for the price of LDO – $1.4-$1.

Price Analysis Of LDO On The Four-Hourly (4H) Chart
Four-Hourly LDO Price Chart Analysis | Source: LDOUSDT On Tradingview.com

The 4H timeframe for LDO prices continues to weaken as prices break to the downside of key support of $1.8 as price struggles to reclaim this region for a chance to trend higher. If LDO fails to reclaim this zone, we expect the price to retest lower support zones of $1.7-$1.5.

On the 4H timeframe, the price of LDO is currently trading at $1.79 below the 50 and 200 Exponential Moving Average (EMA), acting as resistance for LDO price. The price of $1.9 and $2 corresponds to the resistance at 50 and 200 EMA for the price of LDO. The price of LDO needs to reclaim 50 EMA for a chance to trend to $2.2. If LDO fails, the price of LDO will look for support below this area.

The Relative Strength Index (RSI) for LDO is below 50 on the 4H chart, indicating more sell order volume. 

Four-Hourly resistance for the LDO price – $1.9-$2.

Four-Hourly support for the LDO price – $1.7-$1.5.

Featured Image From Coinmarketcal, Charts From Tradingview

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Lido DAO Continues With Strong Bullish Bias, How High Can Price Go?

The price of Lido DAO (LDO) has shown so much strength despite the downtrend across the market, with Lido DAO (LDO) eyeing a rally to its all-time high of $4. Bitcoin’s (BTC) price has shown a little strength bouncing off from key support, leading to most crypto assets popping out from their shell. (Data from Binance)

Lido DAO (LDO) Price Analysis On The Daily Chart 

LDO token price has shown so much strength creating a higher high after hitting a daily low of $1.6; the price bounced off from this region and rallied to $2. 

The price of LDO rallied to a high of $2.2 but has faced resistance; LDO needs to break this resistance at $2.2 to have a chance of trading higher. 

LDO price has continued to show so much strength as bulls are ready to push the price of LDO to higher heights.

The price of LDO is currently trading above its support at $1.9, with eyes set for more highs. 

Daily resistance for the price of LDO – $2.2-$2.4.

Daily support for the price of LDO – $1.9.

Price Analysis Of LDO On The Four-Hourly (4H) Chart
Four-Hourly LDO Price Chart | Source: LDOUSDT On Tradingview.com

After falling from a high of $4, the price of LDO on the four-hourly timeframe has formed support at $1.6, holding the price of LDO from going lower as this has become an area of demand for LDO price.

The price of LDO formed a bullish symmetrical triangle before breaking out with good volume, and the price continued to rally after a successful breakout.

LDO trades at $2.2 above the 50 and 200 Exponential Moving Average (EMA). The prices at $2.1 and $1.96, corresponding to 50 and 200 EMA, will continue to keep the price of LDO from going lower.

If the price of LDO maintains its structure, we could see the price going higher to a region of $3 as the volume pushing the price of LDO looks bullish for such price movement.

If the price of LDO fails to hold this above 50 and 200 EMA support, we could see the price of LDO retesting the support at $1.9-$1.6, as this has proven to be an area of interest for buyers

Despite being rejected recently from the $2 mark, LDO price has continued to look bullish with more buy volume for this coin.

Four hourly (4H) resistance for the LDO price – $2.2-$2.4.

Four hourly (4H) support for the GMX price – $1.9-1.6.

Price Analysis Of LDO On The One Hour (1H) Chart
Daily LDO Price Chart | Source: LDOUSDT On Tradingview.com

The price of LDO in the 1H timeframe has continued to respect the trendline while creating higher highs; if the price of LDO continues its bullish structure, we could see LDO going past the $3 mark.

If the trendline supporting the LDO token is broken, we could see the price revisiting $1.9, just below the 200 Exponential Moving Average (EMA). The price of LDO is currently trading above the 50 and 200 EMA, acting as support for LDO price in the 1H timeframe.

One Hourly (1H) resistance for the LDO price – $2.2-$2.4.

One Hourly (1H) support for the LDO price – $1.9.

Featured Image From Coingape, Charts From TradingView.com

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Lido (LDO) Price Spikes Over 10% In 24 H, Making It Most Profitable Alt

The broader crypto market showed an impressive price rally mid-day, August 31. Cryptos such as Bitcoin and Ethereum have increased by 0.87% and 2.58%. BTC’s price is $20,319.03, while ETH has regained a hold on $1589.74. The top coins are now trading in the greens. 

But the morning hours of August 31 didn’t sit well with the assets. Many cryptos lost their 24-hour price gain, including BTC and ETH. Bitcoin lost its hold on the $20K mark, while Ethereum followed with a 0.4% loss.

Related Reading: Bitcoin Trades Above $20,000, Has The Fed Failed Again?

Others, such as DOT, DOGE, SOL, and SHIB, lost 2.05%, 2.08%, 1.47%, and 2.21%. But the higher losers were AVAX and SNX, which dropped by 3.34% and 7.5%.  

The Tides Have Turned For DAO 

Lido DAO coins have spiked by over 11% in the past 24 hours. According to analysts, this price gain has made it the top profitable crypto asset. LDO gained support and climbed above its critical resistance level. Also, the Relative Strength Index for LDO on the chart shows that it entered the neutral zone.

These indicators show an imminent acceleration and price increase. Right now, LDO is fluctuating between $1.98 and $2. Also, its trading volume has spiked considerably. By that, there’s a high possibility of a continuing price rally. 

One of the possible reasons for the push on LIDO price is the upcoming Merge. While many analysts already hint that the upgrade has been Priced In for Ethereum, the case might be different for Lido DAO. 

The decentralized organization is among the top holders of Ethereum 2.0 staking contracts. So, as the network upgrades and becomes more scalable, the effect will resound on Lido. 

The organization will become a top shareholder of Ethereum after the upgrade. This means it will have adequate voting power to participate in network activities. That’s why more people are buying into this opportunity by purchasing LDO tokens ahead of time. 

LDO price is currently trading at $1.97. | Source: LDOUSD price chart from TradingView.com
LDO Journey in August 2022

One reason to celebrate the upward momentum in LDO is the poor performance that characterized its August price journey. After shocking its community with a 340% rally in mid-August, the token started a downward trend. 

Related Reading: TA- Near Protocol Struggles With Resistance, Can Bulls Push Price To $6?

The LDO price jump was linked to the Ethereum Merge event. As a major shareholder in Ethereum 2.0, the upgrade favored the decentralized organization. But the token couldn’t sustain the spike and continued losing until it fell below its 50-day moving average on August 26.

At that point, investors lost hope of a reversal until this latest price gain. Currently, the 24-hour gain has attracted more attention toward LDO. The community expects to see more spike in value as the Merge date approach. 

Featured image from Pixabay and chart from TradingView.com