On-chain data suggests institutions are increasingly offloading Lido DAO (LDO), the liquid staking platform on the Ethereum (ETH) blockchain.
Over the past month, institutional wallets have transferred approximately 48.48 million LDO, valued at $45.6 million, to exchanges, according to blockchain analytics data retrieved from Arkham Intel on June 10.
Among the most recent transactions, Paradigm Capital moved 10 million LDO through a series of deposits to exchanges such as Gate.io, Bybit, OKX, and Binance.
These transfers ranged from 500,000 to 1.76 million LDO over the past week and month. This uptick in exchange inflows hints at potential selling pressure, as institutions deposit large amounts of tokens on trading platforms before liquidating their positions.
Consequently, the swift movement of such volumes may signal either profit-taking or a shift in institutional strategy, especially considering LDO’s dual role in governance and staking.
LDO price analysis
Interestingly, this wave of selling comes at a time when LDO ranks among the best-performing digital assets in the past 24 hours. As of press time, the token was trading at $0.95, marking a 15% gain over the past day and an 11% rise over the past week.
However, despite this short-term surge, Lido’s technical indicators suggest a more cautious outlook. The 50-day simple moving average (SMA) currently stands at $0.927406, trailing below the 200-day SMA of $1.16126, signaling a broader bearish trend.
Meanwhile, the 14-day Relative Strength Index (RSI) sits at 51.05, reflecting neutral momentum and potential market indecision. A breakout above the 200-day SMA could spark bullish sentiment.
Adding to the complexity, Lido is experiencing a wave of heightened network activity. For instance, in early May, Lido Finance introduced Lido Improvement Proposal (LIP) 28, a significant governance overhaul.
This proposal outlines a dual governance model that grants stETH holders, who stake ETH through Lido, veto rights over key decisions previously reserved for LDO token holders.
Under this model, a dynamic timelock mechanism delays DAO decisions, giving stETH holders time to protest by depositing tokens into a designated contract.
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