LDO finds itself on murky ground as Lido Finance announces its latest integration

  • Lido has announced the pilot integration of its set of validators with Obol Network’s Distributed Validator Technology (DVT)
  • However, at press time, LDO was struggling to get rid of the bears.

First liquid staking platform Lido Finance, December 23, announcement a successful pilot integration with Obol Network, a distributed validation technology provider, on the Goerli testnet.

Read the Lido [LDO] Price Prediction 2023-24

According to Lido, the integration was intended to demonstrate the benefits of running a Lido validator with technology from Obol Network. This was part of Lido’s goal to allow permissionless participation to its set of validators. During the pilot, which took place last month, 11 Lido node operators participated.

Commenting on the reason for the integration, Lido said:

“Lido is working hard to create a set of high-quality distributed validators, and DVT will further increase protection against single points of failure… Distributed validation technology allows multiple nodes to share the tasks of an Ethereum validator; this new approach improves resiliency (security, liveness, or both) compared to running a validator on a single node.

LDO suffers from negative investor sentiment

An assessment of LDO’s performance on a daily chart revealed the start of a new bearish cycle on December 19th. The price of alt has since fallen 6% and the intense coin distribution has put sellers in charge of the market.

LDO has since experienced a decline in buying momentum. Over the past five days, LDO’s balance volume has fallen by 2%. A downward advance in the equilibrium volume (OBV) of an asset was an indication that investors were selling the asset. For a retracement to occur, investors’ conviction must change and the accumulation must recover significantly.

How many LDOs can you get for $1?

Moreover, this position was confirmed by LDO’s Relative Strength Index (RSI) status. As of this writing, the indicator is trading below the midline at 38.27. Also located below neutral, the Money Flow Index (MFI) was 48.24 at press time.

Source: Trading View

Additionally, an on-chain assessment of LDO trade activity since the start of the bear cycle showed an increase in trade inflows and a decline in trade outflows.

This usually indicates a spike in coin sales and a drop in the volume of coin purchases.

Source: Santiment

Interestingly, while the price of LDO has been falling steadily over the past few months and has been followed by negative weighted sentiment, many of its holders are still seeing profits on their investments.

By data of Saniment, the market value to realized value (MVRV) ratio of LDO has been positive since July. This means that if a holder chose to sell anytime between July and press time, they would have made double the profit on their investment.

Source: Santiment

Leave a Comment