Lido price has been in a strong bullish trend in the past few weeks as investors cheer the growth of the ecosystem. The LDO token rose to a high of $2.63, which was the highest level since August. It has risen by more than 133% from the lowest level this year.
Liquid staking demand rises
Lido has grown from a small blockchain project into the biggest player in Decentralized Finance (DeFi). It is a leading player in a relatively small part of the industry known as liquid staking.
Liquid staking is a strategy of making money in the blockchain industry that makes it possible for people to stake in a friendlier way. It is different from how you stake popular proof-of-stake tokens like Solana, Avalanche, and Cosmos.
Lido operates in several blockchains, including Ethereum, Solana, Polkadot, and Kusama. A bulk of its funds are staked in Ethereum, which holds over $4 billion worth of assets. Ethereum stakers receive Lido Staked ETH, a cryptocurrency that has a total market cap of more than $4 billion.
Lido price has done well in the past few weeks as investors react to rising inflows in the ecosystem. Its total value locked (TVL) has risen to over $6 billion. Along the way, Lido has overtaken MakerDAO to become the biggest DeFi platform in the world.
Another reason for the Lido price comeback is the upcoming Ethereum upgrade. Known as the Shanghai upgrade, it will allow Ethereum stakers to withdraw their earnings. For starters, Ethereum introduced staking in its platform in 2022 as part of The Merge. Before that, Ethereum staking was happening in the Beacon Chain. Therefore, investors believe that Lido will continue growing in 2023.
Lido DAO price prediction
The daily chart shows that the LDO price has done well in the past few weeks. It managed to move above the important resistance point at $1.86, the highest point since November 4. The token has surged above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved to the extremely overbought level.
Therefore, there is a likelihood that Lido will decline in the coming days as it moves to its distribution phase. If this happens, the next key support at $1.10. A move above this year’s high of $2.5 will invalidate the bearish view.
