150 per cent hike in LDO price is not enough to make up for the losses in the last few months
Lido DAO has become the most profitable cryptocurrency among the top 100 digital assets by market capitalization, after gaining nearly 200% off its value over the past seven days. The main reason behind the development is the launch of Ethereum 2.0 and the benefits Lido is getting from it.
Recently, Ethereum developers announced that a merge update is expected on September 19th, which immediately led to a 25% jump in LDO on the date of the announcement as it acts as a governance token in Lido, holding 4.1 million ETH in one go. The mortgage is locked in the contract.
In addition to the increased price, there has been a huge increase in the number of Ether deposited into staking contracts via the Lido platform, mostly due to the fact that investors now know the exact date of the upcoming release.
not as good as it sounds
Unfortunately, even a 200% price increase, which has already dropped to 150%, is not enough to cover the losses suffered by LDOs this year. Since reaching local highs in April, LDOs have lost 66% of their value.
In early July, LDO was down nearly 90%, making it one of the worst performing coins among the top 100 cryptocurrencies by market cap.
As of now, LDO is very short bought and may face a correction in the coming days or hours as buying volume remains relatively low and may not be enough to continue the current rally.