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Lido Price Spikes 13%, Surpasses Ethereum in Fees — LDO Defying The Market Trend

Last Updated June 24, 2024 3:18 PM
Nikola Lazic
Last Updated June 24, 2024 3:18 PM

Key Takeaways

  • Lido DAO surpassed Ethereum in fee generation.
  • LDO token rose 13% today, hinting at a continued uptrend.
  • LDO’s re-staking program boosts its competitive edge.

Lido DAO has recently surpassed Ethereum in fee generation, positioning itself prominently in the DeFi sector amidst a trend where decentralized applications become significant revenue drivers.

Meanwhile, the price of the LDO token rose by 13% today in the bearish market environment, making it one of the few coins among the top 100 that is in the green. Will the uptrend from June 12 continue? 

Lido DAO’s Current Status

Lido DAO continues to assert its dominance in decentralized finance (DeFi), particularly in liquid staking, which holds over 40% of staked ETH. This substantial share enables Lido DAO to generate impressive annual fees amounting to $1.22 billion, further cementing its position as a leader in the space.

LDO
LDO Fees | Source: Token Terminal

Additionally, the platform has expanded its offerings by introducing a re-staking program. This new feature utilizes stETH for additional security layers and allows Lido DAO to effectively compete with other platforms like EigenLayer, enhancing its overall service capabilities.

The significant growth in Lido DAO’s activities and its consistent ability to generate high fees illustrates a robust standing within the DeFi ecosystem. This performance indicates a pivotal shift in the crypto economy, where applications now serve as the main economic drivers rather than blockchains. 

Despite varying market conditions, Lido DAO maintains its popularity, which is underlined by its strategic fee redistribution to token holders and enhanced earnings potential. These developments reinforce Lido DAO‘s leadership and underscore the evolving dynamics of revenue generation in the DeFi space, showcasing the increasing importance of application-driven economic activity.

LDO Price Analysis 

LDO’s price started a downward trend after reaching a yearly high on January 10. By May 15, it had dropped to $1.50, undoing all the gains from its earlier rally and completing a 100% retracement to the level where the previous uptrend began in September of the prior year.

LDO
LDOUSD | Credit: Nikola Lazic/Tradingview

Following this, LDO broke below its ascending support line but surged 78% to hit $2.70 by May 26, fueled by strong parabolic momentum. This peak aligned with its descending trendline that began in January, marking a pivotal point. Subsequently, LDO dipped but recorded its first higher low since January at $1.77 on June 11, suggesting the potential start of a new uptrend. The price then rallied nearly 32% to $2.34 by June 19, approaching its descending resistance.

A break above this descending trendline would confirm the onset of a bull phase. Should this occur, LDO is anticipated to surpass its May 26 high, potentially reaching above $3, and could even approach or exceed its January high of $4 later in 2024.

Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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