Lido DAO (LDO), Lido Finance’s original cryptocurrency, has increased its total market capitalization to $1.25 billion.
This is no longer a surprise as crypto assets are in the middle of an incredible run that can double their profits on intraday, weekly, bi-weekly and monthly charts.
At press time, according to data from CoingeckoLDO changed hands at $1.51, increasing its value by 13% in the last 24 hours.
Over the previous seven days, the digital token rose 56.5% while also posting a weekly gain of 60% and a monthly increase of 50%.
Already in the midst of an impressive showing, some analysts believe that Lido DAO still has room for improvement, thanks to the recent ETH upgrade.
Image: The Crypto Times
Lido Expected To Benefit From ETH Shanghai Upgrade
According to a recently released analysis, Lido Finance, at the time of writing, is responsible for almost 30% of all staked ETH tokens, so The largest Liquid staking platform for Ethereum now.
It is noted that demand for the platform increased after Ethereum switched from the proof-of-work mechanism to the proof-of-stake mechanism in 2022.
In addition, the analysis states that the upcoming Shanghai fork of the blockchain will enable users to withdraw their valued ETH tokens, which is also expected to encourage more people to stake through Lido Finance. This will then increase the demand for the original token of the project.
Some experts believe that these are just some of the triggers that have helped crypto assets rise by more than 55% in just seven days and will also play an important role in altcoins’ efforts to maintain their bullish rise.
LDO total market cap at $1.28 billion on the weekend chart | Chart: TradingView.com
… But LDO Can Lose Momentum
Although it looks good now, there is still a chance that LDO could enter a price correction phase that will not only stop the upward movement but also lose most, if not all, of the current gains.
LDO is now on overbought area and has reached the point for the psychological take-profit zone which is an indication of strong selling pressure.
There is also a noticeable decrease in the number of LDO tokens held by the top addresses, which indicates whales are selling their holdings. This is expected, due to the large increase that Lido DAO has made in the past few days which gives investors the opportunity to profit.
If these conditions do not change, there is a high probability that the outstanding crypto assets will end soon and will return to the previous bearish track.
-Featured image: Coinpedia