Lido Finance: What will happen to LDO when ETH PoS is fully operational
Lido Finance has really taken the crypto market by storm, especially with its liquid staking feature. The hype about the Ethereum merger that contributed to the popularity of Lido and LDO is now dead. But Lido's latest announcement could bring some excitement to the trading platform.
Lido (LDO) price prediction
According to the announcement, Lido plans to introduce the ability to transfer ETH from the Ethereum beacon chain. This move will allow the staking platform to mine more liquidity from the beacon chain.
The carrier plans to introduce this feature through an upcoming update.
Lido also revealed that their development team is investigating different mechanisms or methods for validator output. This will remove the concern that validators will not be able to withdraw your funds.
The staking platform intends to consider factors such as node operator profitability, viability, and validator distribution to make the final decision.
Well, your decision to create a structure for validator output is part of your plan to enforce decentralization. One potential long-term effect of this decision is that the option could incentivize more people to participate, as validators will have the option to opt-out.
LDO Price chart analysis
LDO experienced its first wave of activity from July to mid-August before entering a bearish trajectory. It failed to recover during the crisis week, leading to a 65% drop from August highs to current lows a few days ago.
The altcoin is trading at $1,483 at press time after gaining 33.6% over the past seven days. Its gains experienced friction near current prices after reaching the 50-day RSI. The gains reflect accumulation following the recent lows indicated by the money flow index (MFI).
Looking at LDO supply dynamics can help provide insight into where token prices are next. Its supply on exchanges has increased by about 2.84 million LDO in the past five days. This is equivalent to $4.21 million. It represents 0.009% of the LDO market capitalization at the time of publication.
The supply of coins outside of exchanges has decreased by $2.8 million worth of coins, which is roughly the amount entering exchanges. Outflow confirms that LDO holders are transferring their funds from their personal wallet or staking platform to the exchange.
Daily active addresses increased markedly over the past five days but decreased in the last 24 hours.
At the same time, the token's transaction count recorded a significant drop to a 4-week low in the past day. This result explains why the LDO price did not break above the 50% RSI.
The drop in daily active addresses and the number of transactions over the past 24 hours is consistent with higher exchange balances. It shows that the short-term outlook for LDO is bearish and investor sentiment remains low.
Oct 21, 2022