Lido DAO Token (LDO) price has remained in a tight range in the past few months as investors have focused on meme coins instead of utility tokens. The LDO price was trading at $1.873 on Saturday, up from this month’s low of $1.4. It has remained in this range in the past few months and is still down by about 53% from its highest point last year.
Lido DAO token rises amid bullish sentiment
There are signs that investors are turning to Lido DAO token as focus tuns to the upcoming V3 launch that introduce new features. The most notable features are its customized staking, validator customization, and risk-reward adjustments.
Crypto tokens often surge ahead of a major upgrade as they typically lead to more enthusiasm and engagement, especially on X and StockTwits. Indeed, data by Santiment shows that the LDO token had one of the most bullish crowd sentiment in 9 months.
📈 Lido Dao’s +26% market cap surge over the past 5 days has led to the altcoin having the most bullish crowd sentiment in 9 months. The 54th ranked market cap asset normally only gets ~0.025% of crypto discussions, is seeing 9 times the normal discussion rate. With several…
Catalysts for LDO token
The LDO token price has more catalysts on top of the upcoming upgrade. First, there are signs that Ethereum Foundation will deposit cash to the network soon. The foundation has deposited cash to some of its biggest ecosystem assets recently.
As shown below, it deposited $26.7 million to Spark, $80 million in AAVE, and $11.6 million in Compound. This deployment is part of the foundation’s goal to support its ecosystem growth over time.
Therefore, there is a likelihood that it will deposit cash to Lido DAO, the biggest part of its ecosystem with over $24 billion in assets.
For starters, Lido offers a liquid staking platform that enables users to deposit their staked Ether tokens in exchange for the stETH token. This allows users to continue earning rewards from their staked ETH tokens.
Liquid staking is often seen as a better alternative to the traditional approach because users can use the stETH tokens to trade and do other things in the decentralized finance (DeFi) industry. ETH staked in Lido earns a reward rate of about 2.5%.
Lido has become one of the most profitable players in the crypto industry. It has already made over $124 million in fees this year, making it the third-most profitable dApp in the industry after Jito and Uniswap. According to TokenTerminal, it has made over $1 billion in the last 12 months.
Read more: Ethereum Staking Meets Social Impact: Lido Impact Staking Officially Launches
Lido DAO price forecast
Technicals suggest that the LDO token price may surge in the coming months. The daily chart shows that the token has been in a tight range in the past few months as it has remained between the support and resistance levels at $1.4 and $2.45.
This consolidation is part of the formation of the handle section of the cup and handle pattern, a popular bullish continuation sign. This cup has a depth of 65%.
Therefore, by measuring the same distance from the upper side of the cup, we can estimate that the token will surge to last year’s high of $4.2. This price action is about 115% above the current level.
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