Lido DAO has recently rolled out Lido v3, an upgrade aimed at enhancing the flexibility of Lido on the Ethereum blockchain. Lido stands as the leading liquid staking protocol, boasting a total value locked (TVL) of over $25.5 billion. This protocol allows users to stake their assets and receive stETH in return, which can then be utilized in various DeFi applications while still earning staking rewards.
A notable feature of the upgrade is the introduction of stVaults, which are customizable smart contracts designed to cater to the needs of users, particularly institutional ones. Through stVaults, users can fine-tune their staking configurations, including validation processes, fee structures, risk-reward profiles, and more, to align with their specific requirements.
Following the announcement of the upgrade, the price of LDO, the platform’s native and governance token, experienced some positive movement. This raises the question – Is now a good time for investors to consider adding LDO to their portfolios?
LDO Shows Positive Signs After Rebounding from Recent Lows
The Lido DAO governance token has been trading within a defined range since December. Despite briefly dipping below recent lows over the past weekend, it swiftly bounced back from $1.5.
Although technical indicators initially leaned towards bearishness, with the CMF indicating significant capital outflows and the MACD residing below the zero line, recent developments have been more encouraging. Sentiment surrounding LDO has surged to a 9-month high, as noted by Santiment’s analyst Brian.
It’s worth noting that this uptick in sentiment coincides with bearish signals from most altcoins in the market. Additionally, the increased whale activity could indicate a growing interest in accumulating LDO tokens.
On-chain metrics further support the potential for LDO’s growth. While the mean coin age (MCA) dropped towards the end of January amidst a price correction from the highs at $2.4, recent data suggests a gradual upward movement in MCA over the past week.
Despite a decline in dormant circulation in recent weeks not aligning with the MCA pattern, indicating medium-term holders are holding onto LDO, the negative MVRV ratio implies that holders are currently at a slight loss. However, coupled with the recent retest of local range lows, this situation could present a buying opportunity for those interested in investing in Lido.