– Lido DAO (LDO), the governance token of biggest ETH staking protocol Lido Finance, has surged nearly 48% during the past 24 hours.
– The move coincided with the general upwards direction of crypto market after the yesterdays news from the US Federal Reserve.
– However, there are some more fundamental factors that are driving investors sentiment up.
– With more than $7 billion worth of ETH staked on its protocol, Lido is the biggest payer in ETH staking space.
– It should also be one of the biggest beneficiaries after Merge in September.
– Lidos native governance token LDO emerged as one of the best performing cryptocurrencies this month, recording nearly 398% growth since the first day of July.
– The price of the LDO spiked from $1.498 to $2.203 at around 6:00 AM (UTC) today, according to the charts of CoinMarketCap.
– This led to a 70% LDO price growth since Tuesdays $1.29 lows.
– The recent LDO rally intensified yesterday after the general optimism returned to both cryptocurrency and stock markets, following the interest rate hike announcement from the United States central bank.
– The Federal Reserve raised increased interest rates by 0.75 percentage points, however, suggested that the intensity of the hikes might slow down in the future.
– Earlier this week the protocols governance body LIDO DAO rejected a $14.5 million proposal to sell 10 million LDO tokens to Dragonfly Capital investment fund.
– This is around 1% of tokens supply held on the protocols treasury, which is mostly denominated in LDO and is highly dependent on token price performance.
– The tokens sale for Dragonfly Capital was meant to diversify the treasury of Lido DAO.
– The voting process turned into scandal though, after several whales tried to overcome Lido DAO communitys efforts to stop new investor from purchasing LDOs without any lockup obligations.
– Lido DAO (LDO) trades at around $2.24 at the time of writing and records more than 322% increase in its trading volume over the past 24 hours.
– The token confidently broke above 50-day Moving Average (MA) today and also above the important resistance line of $1.9 on a 4-hour chart.