Lido accumulation takes an interesting turn with this institution
- Almost $10 million worth of LDO was accumulated in the last five days.
- While new addresses refrained from transacting, LDO transfers increased.
For the second time in three days, FalconX has moved a ton of Lido Finance [LDO] tokens into self-custody. The first time the institutional crypto platform transferred LDO was on 11 October. As of then, Lookonchain reported that Falcon X withdrew $8.13 million worth of Lido from Binance, making its total holding $10.94 million LDO.
Realistic or not, here’s LDO’s market cap in ETH terms
On 13 October, FalconX withdrew 1.23 million LDO from the same exchange. This was once again disclosed by Lookonchain.
FalconX withdrew 1.23M $LDO ($1.86M) from #Binance again today.#FalconX has accumulated a total of 6.48M $LDO ($9.8M) from #Binance in the past 5 days.https://t.co/Nc3oc607da pic.twitter.com/10XR7lGxbR
— Lookonchain (@lookonchain) October 13, 2023
Rising belief in the staking king
Whenever this sort of action takes place repeatedly, it means those involved are not willing to sell anytime soon. In most cases, it also means that there is a sentiment that the token has great long-term potential.
But could this be the case with Lido? Well, the project’s solid fundamentals tend to agree that Lido could remain relevant in the market for a long while. LDO’s 5.17% hike in the last 30 days may have propelled FalconX’s decision.
However, the price action impact may have been very minute compared the Lido’s fundamentals. One of the reasons the project thrives is the staking infrastructure it provides for multiple blockchain networks.
Over the last year, the crypto sector has experienced an increase in staking activity. More impressive is the fact that Lido, acting as the backbone of staking on Ethereum [ETH], has been at the forefront of adoption.
In fact, Staking Rewards data showed that momentum has not stopped growing in the sector. For instance, on the Ethereum PoS network, Lido has a net staking flow of +$127.62 million. Also, the crypto staking explorer revealed that stakers engaging the Lido stETH have also grown by 7.39% within the last 30 days.
Network activity grows, traction drops
Another metric that could be vital to LDO’s long-term potential is Network Growth. Described as a measure of new addresses’ interaction with a network, an increase in the metric would mean a surge in traction.
This could, in turn, result in the accumulation of the token. Thereby resulting in a hike in price. But, according to Santiment, Lido’s Network Growth has decreased in the last 30 days. At press time, the metric was down to 29, meaning adoption has been relatively low.
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Active Addresses indicate the daily level of crowd interaction or speculation around a token. Therefore, the hike implies that there have been a lot of distinct addresses involved in LDO transactions lately.
So, it might take a while longer before LDO’s significant uptick begins. Meanwhile, active addresses in the last 30 days have had a different experience. At the time of writing, the metric was up to 5165.