- Lido’s market dominance has fallen to its lowest level in over a year.
- The protocol has seen a significant increase in withdrawals.
Market share of liquid staking protocol. Lido Finance (LDO) on the Ether staking market has fallen to a yearly low.
According to the Dune Analytics dashboard, the share of ETH hosted on the beacon chain through the Lido middleware was 29.1% at the time of publication. The last time it was below 30% was in February 2023.
Source: Dune Analysis
Year to date (YTD), Lido’s market share has fallen by 8%. This decrease is due to an increase in withdrawals from the liquid staking protocol over the past month.
Dune Analytics data showed that since March 12, withdrawals from Lido have exceeded deposits made through the protocol.
At the time of publication, Lido, ranked as the betting platform with the highest outflow, had 117,000 ETH worth $35.69 million.
Source: Dune Analysis
Lido has seen a rise in withdrawals as the annual percentage rate (APR) offered to users betting on the platform has fallen.
As of April 10, the user’s annual interest rate, measured by a seven-day moving average, was 3.28%, down 14% since March 11.
What to expect from LDO
At the time of publication, the protocol’s native token LDO was trading at $2.61. According to the company, its value has fallen by more than 20% over the past month.
CoinMarketCap’s data.
Its performance on the weekly chart hinted at the possibility of a new decline in the medium term.
The Chaikin Money Flow (CMF), which measures the flow of money into and out of an asset, broke above the zero line and was about to move lower at the time of this publication.
A CMF value less than zero is a sign of market weakness. This suggests an increased outflow of liquidity from the market and increased selling pressure.
Confirming the increase in LDO’s distribution, its Relative Strength Index (RSI) stood at 40.69 and continued to decline at the time of writing.
This RSI value showed that market participants preferred to sell their LDO holdings rather than accumulate more tokens.
In addition, the dotted lines of the Parabolic SAR LDO indicator were above its price at the time of publication.
Source: BNB/USDT on TradingView.
Realistic or not, here is the market cap of LDO in BTC.
This indicator measures possible turning points in the direction of an asset’s price. When its dotted lines are above the asset price, it is a bearish signal.
This confirms that the price of the asset is declining and that the decline will continue if sentiment remains the same.
This is an automatic translation of our English version.