Lido Finance, the liquid staking protocol of the Ethereum (ETH) network, has experienced a significant price drop over the past two weeks, largely influenced by the market downturn and the lack of bullish momentum.. However, a notable breakout could be in the creation of the protocol’s native token, LDO, despite negative financial metrics.
Lido And Mellow Finance’s Partnership
Despite challenging market conditions, Lido has made significant strides within its ecosystem. Working with Mellow Finance as part of the Lido Alliance, the protocol has was introduced advanced financial strategies (Decentralized finance) for stETH owners.
These strategies aim to improve Mellow Finance’s non-permissible Liquid Restaking Token (LRT) creation, making it easier. stETH owners increasing the use of assets through rezoning and collecting various rewards.
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The newly launched vaults also aim to secure flexible ways to interact with Ethereum staking and DeFi, increasing the liquidity and use of sETH.
This partnership represents the first phase of Lido Alliance’s efforts to expand Ethereum ecosystem decline through strategic collaboration and complementary projects. However, key metrics show a drop in the price of LDO, which is likely to follow in the footsteps of Ethereum, which has also seen a drop to $3,480 from its March high of 3,990.
Negative Financial Metrics
Lido’s Total Value Locked (TVL) decreased by 1.70%, to $35.39 billion, mainly influenced by ETH price drop.
The amount of ETH deposited saw a slight increase of 0.26%, with a net increase of 19,392 ETH deposited last week. Similarly, the amount of (w)stETH in lending pools saw an average growth of 1.46%, reaching 2.66 million stETH, while the amount of w(stETH) in receiving pools decreased by 3.13% to 89.3k stETH.
Furthermore, the 7-day trading volume of (w)stETH stood at $1.03 billion, down 19.7% compared to the previous week. Additionally, the total amount of wstETH combined with Layer 2 solutions decreased by 2.86% to 136,893 wstETH.
Analysis integration calculationsThe distribution of wstETH between the various Layer 2 networks is as follows:
- Arbitrum: 69,676 wstETH (-6.07%)
- Hope: 28,906 wstETH (+0.44%)
- Base: 15,429 wstETH (-6.35%)
- Scrolling: 10,329 wstETH (+9.48%)
- Polygon: 8,522 wstETH (+0.07%)
- Row: 2,928 wstETH (+20.59%)
- zkSync: 1,093 wstETH (-0.49%)
LDO Price Target From $6 To $17
Despite these metrics, crypto analyst Alex Clay remains optimistic about LDO’s future. Clay recently shared bullish predictions for LDO, envisioning a significant breakout if bullish momentum resumes.
The latest posted On social media site X, Clay highlighted the 756-day LDO accumulation high, suggesting a potential “major breakout”. The analyst continued to raise the price target for new investors, from $6.3 to $17.2.
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LDO is trading at $1.88, representing a 3.5% drop over the 24-hour period and a more than 20% drop over the past two weeks. Notably, the token saw a 74% drop from it world class in June 2021 it is 7.30 US dollars.
It remains to be seen whether positive developments within the Lido protocol and increased stake activity can help mitigate losses. Additionally, a potential price recovery of Ethereum may affect the LDO trend, which may lead to a new increase aimed at recovering previously lost levels.
Featured image from DALL-E, chart from TradingView.com
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