Key Takeaways

 

• Lido DAO aims to allow people to stake ETH and other PoS cryptocurrencies without becoming out-of-pocket.
• Recently, it has launched its latest version, Lido V2, which has helped the price of its LDO token rise over the last month or so.
• LDO is a governance token, meaning that holders can vote on proposed changes to the Lido DAO. 

Introduction

The Lido DAO is one of many Decentralized Autonomous Organizations based on the Ethereum blockchain, but it has been back in the news recently. This is because the platform has announced that, following a vote of community members, it has launched  its latest iteration, dubbed Lido V2. This new version of the system contains a range of new features which, it is hoped, will help boost the platform’s usage. So far, the move appears to have been a success, with the DAO’s LDO crypto rising more than 9% in less than a day on 2 June 2023. 

However, that does raise the question – what is Lido DAO (LDO)? Let’s see what we can find out not only what it is, but also how Lido DAO works, and take a look at some of the Lido DAO price predictions that were being made as of 2 June 2023. 

Lido DAO (LDO) explained

When Ethereum underwent its transition from being a Proof-of-Work blockchain to a Proof-of-Stake platform in September 2022, it was a big deal for cryptocurrency. Not only had the previous version of Ethereum used a lot of electricity, it was also slow and prone to be rather expensive. Now, instead of having to serve an increasingly complex series of mathematical equations to mine crypto, people could instead add blocks to the blockchain-based on how much ETH they held. This involves a process called staking, which sees people set aside crypto in return for rewards. 

There was one issue here. When a coin or token is staked, it is basically taken out of use. This might prove to be a problem for someone who wants to make use of the crypto that they hold. Therefore, there was going to be a gap in the market for something which could let people stake cryptos and not end up out of pocket as a result. 

This is where Lido DAO is designed to come in. This particular system allows people to use something called Liquid Staking. By staking ETH in Lido DAO, people are given a token called stETH as compensation. The value of stETH is equivalent to the amount of ETH they have deposited. It can be transferred, traded, or utilized in decentralized finance (DeFi) applications.

Initially designed to cater to ETH stakers, the system has evolved to enable participation from people staking SOL, KSM, and MATIC. Users staking these particular cryptos receive stSOL, stKSM, and stMATIC tokens, respectively. These tokens function in a similar manner to stETH, offering comparable benefits.

Furthermore, Lido DAO allows people to stake less than the minimum 32 ETH required by Ethereum, thus allowing them to get involved and, potentially, turn a profit with less crypto. 

Lido DAO has its own native token, the conveniently named Lido DAO crypto. This token is used to give holders votes on changes to the network, and it can also be bought, sold, and traded on exchanges.  

Lido DAO, which was set up in 2020, does not have any fully identified founders. While this is not uncommon in the world of crypto, it might be something that could put some potential investors, who might require full transparency, off. 

It is also important to point out at this stage that, because Lido DAO is based on the Ethereum Blockchain, it is a token, rather than a coin. You might see references to such things as a Lido DAO coin price prediction, but these are, technically speaking, wrong. 

LDO price history

Let’s now take a look at some of the Lido DAO price history. Remember, past performance should never be taken as an indicator of future results, but knowing what the token has done in the past can help us when it comes to either making or interpreting a Lido DAO price prediction.

When Lido DAO came onto the open market in January 2021, it was worth about $1.75. The token then went through a series of peaks and troughs, but a blossoming crypto market helped it hit highs of more than $4.70 in May, before market turmoil saw it drop down over the summer, only to recover to an all-time high of $11 on 16 November 2021.

The following year was a rough time for crypto and a series of market crashes saw LDO tumble to an all-time low of $0.406 on 18 June 2022. While there was some recovery for the token in the months following that, it closed the year below the dollar, at around $0.95. So far, 2023 has been an encouraging, if not spectacular, year for the crypto,  there was an overall upward trend and, on 2 June 2023, LDO was worth about $2.29, having started the day at $2.091. At that time, there were 879.3 million LDO in circulation out of a total supply of one billion. This gave the token a market cap of just over $2bn, making it the 32nd largest crypto by that metric. 

Lido DAO token price prediction 

With that all said and done, let’s take a look at some of the Lido DAO price predictions that were being made as of 2 June 2023. As ever, remember that price forecasts, especially when they are attempting to predict the behavior of something as potentially volatile as cryptocurrency, often end up being wrong. Also, many long-term crypto price predictions are made using an algorithm, which means they can change at a moment’s notice. 

First, CoinCodex  had a somewhat downbeat short-term Lido DAO price prediction for 2023. The site said that the token was in for a tough few days, dropping to about $1.96 by 7 June. After that, though, the crypto could, potentially, make something of a small recovery and trade at $3.19 by 3 July. The site’s technical analysis was, perhaps surprisingly, bullish, with 24 indicators sending positive signals compared to just three making bearish ones. 

Next, CaptainAltCoin  made a Lido DAO crypto price prediction which argued the token could drop to $1.26 in August 2023 before bouncing back to trade at $3.06 in June next year. The site also said that LDO could reach $5.40 in 2025 before falling down to $4.68 by June 2028. It went on to make a Lido DAO price prediction for 2030 of $13.51, before going on to give a long-term LDO price prediction which suggested it could be worth $27.02 in 2040. 

Meanwhile, gov.capital  had a LDO price prediction that said the crypto could close 2023 at $2.77. When it came to making a Lido DAO price prediction for 2025, the site thought it could start the year at a little below $9.13, before reaching $13.66 on 2 June that year and trading at just under $17.10 on 31 December. Going forward, it also forecasts that LDO would be worth about $44.53 on 2 June 2028.

Finally, WalletInvestor  had a somewhat optimistic Lido DAO token price prediction. The site argued that LDO could reach just under $2.76 in a year’s time, and then go on to reach a little below $5.38 in June 2023. 

Is Lido DAO a Good Investment?

It is, as always with crypto, hard to say. On one hand, it has performed well so far this year, and it looks like Lido DAO V2 is proving to be popular with investors. On the other hand, the world of crypto is prone to swings and collapses, and there is also the risk that something will come along which steals Lido DAO’s thunder. With The Merge finally complete, a lot will depend on how well Ethereum performs. As ever, you will need to do your own research. 

Will Lido DAO go up or down?

No one can really tell right now. While sites such as CaptainAltCoin predict steady growth for the token, the likes of CoinCodex are far more pessimistic. It is worth remembering that prices can, and do, go down as well as up. 

Should I invest in Lido DAO?

Before you invest in Lido DAO, you will need to do your own research, not only on LDO but on other related coins and tokens, such as Ether (ETH). Ultimately, though, you will have to make this decision yourself. Before you do so, you will need to remember prices can go down as well as up, and never invest more money than you can afford to lose.

FAQs

What will Lido DAO be worth in 2030?

According to CaptainAltCoin, LDO will be worth $13.51 in 2030. 

How many Lido DAO tokens are there?

As of 2 June 2023, there were 879.3 million LDO in circulation out of a total supply of one billion. 

When did Lido DAO launch?

Lido DAO launched in late 2020, with the LDO token hitting the open market in early 2021. 

Disclaimer: This article does not constitute financial advice. Always make sure to do your own research before investing, remember that prices can go down as well as up, and never invest more money than you can afford to lose.