Lido DAO (LDO) Token Surges Despite Declining Market Share in Ethereum Staking

Lido DAO (LDO), the leading Ethereum (ETH) staking provider, is experiencing a surge in token price despite a decline in its share of ETH

Written by: improve security improve security • Friday, May 24, 2024 • 1 min read

• Last updated: Friday, May 24, 2024

Lido DAO (LDO) Token Surges Despite Declining Market Share in Ethereum Staking

Lido DAO (LDO), the leading Ethereum (ETH) staking provider, is experiencing a surge in token price despite a decline in its share of the ETH staking market.

DeFi Market Booms, Lido’s Market Share Shrinks

The total value locked (TVL) across DeFi protocols has reached a two-year high of $106.45 billion, reflecting a bullish market trend.

Lido Finance, the largest DeFi protocol by TVL, has seen its own TVL rise 30% since mid-May. However, Lido’s dominance in ETH staking is waning. Its share of staked ETH has dipped to 28.6%, the lowest since April 2022. This coincides with a broader decrease in staked ETH across platforms.

LDO Token Outperforms

LDO price has jumped over 30% in the past week, defying the trend in Lido’s market share. This surge is attributed to increased demand, with the token’s Relative Strength Index (RSI) indicating strong buying pressure.

Whale activity has also spiked, with LDO ranking second among altcoins most purchased by whales in the recent upswing, behind only Ethereum itself.

Security Breach Resolved

A recent security breach involving a Lido Node Operator, Numic, raised concerns about the compromise of validator keys. Lido DAO and Numic swiftly addressed the issue, resetting keys and implementing precautionary measures to prevent financial losses. Transparency and swift action helped maintain community trust.