The market’s hostile environment is currently hindering altcoins gaining within the short term. With the broader market down by 2%, LDO losses mounted as much as 18% since last week, continuing to finish this week with pain for investors within the short term. This led to shaky investor confidence as fear, uncertainty, and doubt plagued the market.
LDO’s underperformance overshadows the platform’s growth over the month. Lido DAO released analytics that shows several elements that saw increases across the board.
Lido DAO Experiences Growth In The 2nd Half Of August
In line with Lido’s most up-to-date thread, the platform saw a big increase in almost every aspect of the network. Total value locked (TVL) saw probably the most remarkable increase by 4% between August nineteenth and twenty sixth. LDO staked on the Polygon chain also grew by 25% in the identical timeframe.
Lido Analytics: August 19 – 26, 2024
TLDR:
– TVL up 4.72% to $26.98b.
– 28,160 ETH net unstaked.
– 7d stETH APR at 2.80%.
– wstETH on L2 up +0.63% to 186,676 wstETH.
– (w)stETH 7d trading volume up 18.76%.— Lido (@LidoFinance) August 27, 2024
A have a look at Ethereum, nonetheless, reveals the opposite side of the coin. The platform saw a net outflow of 28,160 ETH which, at the present price of ETH, is valued at almost $71 million marking a serious decrease in staked Ether on the platform. The annual percentage rate has also been on the downtrend because the Ethereum network saw record low gas fees following the market’s general momentum.
Ethereum lending fares higher, showing a slight increase despite liquidity pools and restaking activity shrinking by a margin. Nonetheless, (w)stETH trading volume has increased by nearly 20% because the week prior, which incorporates each inflow and outflow, showing that the platform still has the throughput to be at par with competitors.
Lido’s activities on layer 2 blockchains also saw a broad increase within the wstETH bridged. The platform should find a way to handle the bearish market sentiment that’s present throughout the current market environment.
$0.91-$1.1 Trading Range To Stabilize LDO Short-Term
The token’s current position leaves each bulls and bears little to no wiggle room for short-term gains. Nonetheless, the narrow trading range might bode well for the bulls as market volatility lessens, favoring the latter.
With this in mind, investors and traders needs to be optimistic about LDO’s future performance because the relative strength index (RSI) shows that the bulls slowly overtake the bears after per week of bearish activity.
LDO’s significant correlation to major cryptocurrencies like Bitcoin and Ethereum is likely to be a double-edged sword for the token. With BTC returning to the sub-$60k level and ETH struggling to retest $2.8k, LDO might face more pain within the short term as these cryptocurrencies face hurdles.
Investors and traders should exercise caution on LDO while monitoring the broader market momentum for opportunities. If bullishness returns to the market, a long-term retest of $1.6 is a possibility.
Featured image from Pexels, chart from TradingView