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LDO holders could be in for a treat thanks to this latest development

3min Read

Keeping in mind the security aspect, Lido Finance decided to embrace ZK Technology to ease the user experience from a safety perspective. While this may rejoice LDO investors, that wasn’t all as LDO had more to offer.

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  • Lido Finance embraces zK technology to improve security on its offering.
  • Assessing the chances of a bullish pivot as more signs pile up.

Security is a key consideration for most if not all people when transacting cryptocurrencies, especially considering the exploits of the past. Lido Finance has been considering extra steps to improve security in an effort to seal off potential vulnerabilities that may put user funds at risk.

Is your portfolio green? Check out the LDO Profit Calculator

Lido Finance’s latest announcement underscores efforts aimed at improving the user experience from a security point of view. The network recently issued a grant to Nil Foundation to facilitate the creation of zKoracle. The latter will facilitate trustless access to historical data within EVMs.

ZK technology has been growing more popular in DeFi and it is interesting to see that Lido is embracing it. This is because reducing the points of contact with third parties goes a long way in risk management.

Such developments could fuel more confidence in the staking platform.

LDO bears are pushing into an accumulation zone

Lido Finance’s native token LDO sustained a strong bearish performance since mid-July. At press time, the token stood at $1.66. This meant that the altcoin was down by over 30%. However, there is one key observation that may offer some insights into what to expect.

LDO price action

Source: TradingView

LDO previously demonstrated strong accumulation below the $0.65 price level in May and June. A retest of prices below that level resulted in a substantial rally by as much as 50% if not more on those two occasions. Now that the price approaching the same accumulation zone, the probability of a demand resurgence is quite high especially as market conditions improve.

The price could still dip but that will further hammer down the point. This is because more price slippage will likely result in LDO being oversold. Bullish prospects are further supported by a massive mid-week volume surge (in the last 24 hours). This pushed the volume to a new monthly high.

Lido active addresses and mean coin age

Source: Santiment

In addition, LDO’s 90-day mean coin age metric registered some upside in the last two weeks. This indicates a shift in favor of hodling during the same period, which should technically lead to a slowdown in sell pressure.

Read about LDO’s price prediction for 2023/2024

Perhaps observations in LDO’s supply distribution highlight the biggest sign that the bulls might be about to make a comeback. Whales holding between 10 million and 100 million LDO (denoted in red) were seen increasing their balances. This category currently controls over 48.6% of LDO’s circulating supply. This means they have the largest impact on price.

LDO supply distribution

Source: Santiment

Selling pressure has also ceased from multiple whale address categories. Since whales have the biggest impact on price, the findings on the supply distribution further enhance the likelihood of a bullish pivot.


Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.
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