- Lido price has been in a parabolic move in the past few weeks.
- It has risen by almost 400% from its lowest level this year.
- Its total value locked has jumped to over $7.2 billion.
Lido price has gone parabolic in the past few weeks, making it one of the best-performing cryptocurrencies in the world. The LDO token rose to a high of $2.22, which was the highest point since May 13th. It has risen by almost 400% from its lowest level this year.
Why is LDO rising?
Lido has grown from being a relatively small player in the Decentralized Finance (DeFi) industry to the second-biggest one. Its total value locked (TVL) has surged to over $7.2 billion, making it the second-biggest platform in the industry after Maker.
Lido is a DeFi platform built on five key networks, including Ethereum, Solana, Kusama, Polkadot, and Polkadot. Ethereum is its biggest network with over $6.9 billion in assets. It is followed by Solana, Polygon, Polkadot, and Kusama. Lido was also a leading part of Terra's ecosystem.
Lido works in a relatively simple way. It lets people earn interest from their cryptocurrencies like Ethereum. Indeed, according to Nansen, the total ETH deposited in Lido, excluding interest, has jumped to more than 4.2 million. The number of unique depositors has risen to over 70k. This growth explains why the Lido price has gone parabolic in the past few weeks.
Another reason is that staked Ether has almost regained its peg. For starters, stETH is a cryptocurrency that is supposed to track the performance of the main Ethereum. After losing its peg in May, it has regained it, pushing its total market cap to over $6 billion. This makes it the biggest staked asset in the world.
LDO price rally also coincides with the strong performance of other blue-chip DeFi cryptocurrencies like Compound, Uniswap, Aave, and Synthetix. Analysts believe that these platforms will thrive now that they have been stress-tested by the recent crash.
Lido price prediction
The four-hour chart shows that the LDO price has been in a strong bullish trend in the past few weeks, making it the best-performing DeFi token in the world. The coin has moved above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved above the overbought level.
Therefore, I believe that the bullish momentum will continue in the near term as bulls target the next key resistance level at $2.50. A drop below the support at $1.90 will invalidate the bullish view.
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