• Lido is the leading staking platform in terms of net new ETH deposits to the Ethereum beacon chain.
• The crypto market has seen a return of volatility in the last few weeks and that means healthy movement in DeFi.
• LDO has been moving in tandem with the market so far this year but is currently struggling to sustain a rally.
Lido Leads Staking Platforms
Lido is the leading staking platform in terms of net new ETH deposits to the Ethereum beacon chain. This growth is thanks to top layer 2 networks such as Arbitrum [ARB], Optimism [OP] and Polygon [MATIC].
Return of Volatility
The crypto market has seen a return of volatility in the last few weeks, which has resulted in healthy movement for DeFi tokens like LDO. Although it experienced some slippage at the start of June, its TVL corrected during mid-month and peaked at $14.18 billion.
LDO has been performing similarly to the overall crypto market so far this year, bottoming out at $1.62 mid-June before recovering significantly by press time when it was trading around $1.96. However, its supply held by top addresses had decreased slightly on 11 June without much recovery following that point and on-chain volume had fallen to its lowest monthly level on 18 June before recovering again afterwards.
Resistance Despite Growth
Despite these positive developments, LDO struggled to sustain a rally due to exchange flows shifting gears towards bears instead of bulls. It interacted with its 50-day moving average but was unable to break past it resulting in resistance forming instead of rallying further upwards despite all the growth that Lido was experiencing from outside sources such as other layer 2 networks’ staked ETH contributions.
In conclusion, while LDO has performed consistently with the overall crypto markets so far this year, there are still signs indicating that it will struggle rally despite outside sources contributing positively towards Lido’s growth such as other layer 2 network’s staked ETH contributions as well as an increase in overall TVL for June 2021 compared to previous months