2024-04-14 20:05:47
- Lido’s market dominance has fallen to its lowest level in the last year.
- The protocol has seen a significant increase in withdrawals.
The market share of the liquid staking protocol. Lido Finance [LDO] in the Ether staking market has plummeted to a one-year low.
According to a Dune Analytics dashboard, the proportion of ETH deposited on the beacon chain via the Lido middleware was 29.1% at the time of this 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 8%. This decrease is due to an increase in withdrawals from the liquid betting protocol in the last month.
On-chain data from Dune Analytics showed that since March 12, Lido withdrawals have exceeded deposits made through the protocol.
Ranked as the betting platform with the most outflows in the last week, Lido withdrawals amounted to 117,000 ETH at the time of publication, valued at $35.69 million.
Source: Dune Analysis
Lido has witnessed an increase in withdrawals as the annual percentage rate (APR) offered to users betting on the platform fell.
As of April 10, the user APR assessed on a seven-day moving average was 3.28%, having decreased 14% since March 11.
What you should expect from LDO
At the time of this publication, the native token of the LDO protocol was trading at $2.61. In the last month, its value has fallen more than 20%, according to
CoinMarketCap’s data.
Its performance on a weekly chart hinted at the possibility of a new decline in the medium term.
Its Chaikin Money Flow (CMF), which measures the flow of money into and out of the asset, had broken above the zero line at the time of this publication and was regarding to trend lower.
A CMF value less than zero is a sign of market weakness. It suggests an uptick in liquidity outflow from the market and an increase in selling pressure.
Confirming the increase in LDO distribution, its Relative Strength Index (RSI) was 40.69 and continuing 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.
Furthermore, the dotted lines of LDO’s Parabolic SAR indicator were above its price at the time of this publication.
Source: BNB/USDT on TradingView
Realistically, here it is LDO market capitalization in terms of BTC
This indicator measures the possible reversal points in the price direction of an asset. When its dotted lines are above the price of an asset, it is a bearish signal.
It confirms that the price of an asset is declining and that the decline will continue if the sentiment remains the same.
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