As a seasoned researcher who has witnessed countless crypto market fluctuations, I find myself once again observing the ebb and flow of digital assets. The recent fall of Lido DAO (LDO) is a stark reminder that even the most promising projects can be susceptible to market forces.
The cost of Lido DAO dropped significantly due to a wider cryptocurrency market trend where values decreased in tandem with Bitcoin approaching roughly $70,700.
On October 31st, Lido DAO (LDO) experienced a drop of more than 10%, trading around $1.05 initially, but then recovered some of its value. This dip wiped out most of the gains that LDO had made since it was trading at $0.99 on October 28th, and peaked at $1.15 on October 30th.
The decline in the crypto market was influenced by reactions to the U.S. Personal Consumption Expenditures index for September, leading to a wave of selling off.
Bitcoin (BTC) seemed to react unfavorably to the PCE index. Meanwhile, the drop in Lido DAO was similar to other altcoins’, but additional selling pressure from a large investor (whale) dumping their Lido DAO tokens may have exacerbated the decline.
As reported by Spot On Chain, a cryptocurrency wallet identified as a whale, had been storing Lido DAO for a span of three years. On October 31, this whale decided to liquidate its entire Lido DAO holdings.
458,860 Lido DAO tokens, valued at approximately $489,600, were exchanged for 181.6 Ether in the wallet with address 0x9244. This transaction occurred just before Ether’s price started dropping significantly, reaching a low of $2,549, which represented a 24-hour decrease of close to 5%.
Even with the sale, the whale ended up losing money because they had paid an average of $2.50 per token for their tokens over the last three years. This means they lost around $900,000 on their investment.
Over the course of the last year, the value of Lido DAO’s tokens has dropped by about 41%, and the token has been trending downward since it peaked at roughly $3.78 in early January 2024.
According to on-chain information from IntoTheBlock, it’s revealed that 91% of Lido DAO owners are experiencing a financial loss given the current market prices, whereas the other 9% are just breaking even. Should further price drops occur, there is a likelihood that more owners might find themselves in a negative position.
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2024-10-31 18:42