Why did the price of LDO go up?

Lido DAO (LDO) increased by 1.8% in the past 24 hours, matching the overall crypto market’s 1.8% gain and extending its 7-day rally to 11.5%. Here’s why:

1. Altcoin season momentum – Investors are moving money into Ethereum-related tokens as Bitcoin’s market share drops.
2. Clearer rules on liquid staking – The SEC’s guidance eased concerns about LDO being a security, making it more attractive.
3. Technical strength – LDO’s price stayed above key support at $1.29, with positive signals from trading indicators.

Deep Dive

1. Altcoin Rotation & Ethereum Strength (Positive for LDO)

Overview:
Bitcoin’s dominance in the crypto market fell from 65% in May to 56.6% recently (Coinbase). This means investors are shifting funds into altcoins like LDO, which is closely tied to Ethereum. Ethereum itself gained about 9% in mid-August, supported by big players like Bitmine holding $24.5 billion in ETH.

What this means:
LDO’s 58% gain over the last month shows it benefits from Ethereum’s growth, especially as demand for ETH staking hits new highs (Lido’s total value locked reached $41 billion). The Altcoin Season Index (70 out of 100) suggests this trend could continue.

What to watch:
Ethereum’s price movements and the Federal Reserve’s expected interest rate cuts in September, which could free up $7 trillion in money market funds for riskier investments like crypto.

2. Regulatory Support for Liquid Staking (Positive for LDO)

Overview:
On August 5, the SEC clarified that liquid staking services like Lido are not considered securities if the rewards are simply passed through to users without extra conditions (Coinbase).

What this means:
This eased a big regulatory concern for LDO. Around the same time, Lido’s governance introduced Dual Governance, allowing stETH holders to block risky proposals, making the platform safer and more trustworthy.

3. Technical Rebound & On-Chain Demand

Overview:
LDO’s price bounced back above its 20-day moving average ($1.22) and a key support level ($1.29). The Relative Strength Index (RSI) at 56 indicates there’s room for the price to go higher. Other technical indicators like the MACD turned positive, and Fibonacci retracement levels point to a potential rise to $1.47 if it breaks $1.35.

What this means:
Traders are actively supporting the $1.29 price level. The volume during price drops is weaker than during previous gains, suggesting the price is consolidating before moving up again. Big investors, like Arthur Hayes who bought $1.83 million worth of LDO on August 15, add confidence to this outlook.

Conclusion

Lido DAO’s recent gains are driven by Ethereum’s strong momentum, clearer regulatory guidance, and solid technical signals. While the 24-hour increase is modest, the overall setup points to more upside if Ethereum stays above $4,400 and Bitcoin remains stable.

Key to watch: Can LDO break above $1.35 (the 50% Fibonacci retracement level) to target $1.63? Keep an eye on updates from the SEC about staking rules and inflows into Ethereum ETFs.

What could affect the price of LDO?

Lido DAO is managing a mix of technical updates and market challenges.

1. Dual Governance Launch – stETH holders now have veto power, lowering governance risks (positive)
2. Institutional Selling – Early investors like Paradigm are still selling tokens (negative)
3. Regulatory Support – SEC ruled in July 2025 that liquid staking isn’t considered securities (positive)

In-Depth Look

1. Protocol Updates & Decentralization Efforts (Mixed Effects)

Summary:
In July 2025, Lido introduced Dual Governance. This lets stETH holders with at least 1% of deposits delay proposals for 5 to 45 days or block them if 10% oppose. New proposals like CSM v2 (which limits community validators to 10%) and EIP-7002 withdrawals aim to reduce dependence on node operators.

What this means:
These changes help address concerns about Lido being too centralized on Ethereum. However, they also add complexity to how the system runs. Past major updates caused price swings—LDO’s price moved up and down by about 18% around May 2025 during an oracle emergency vote (Lido Finance).

2. Large Token Sales & Unlocking Schedules (Negative Effects)

Summary:
Paradigm Capital sold 20 million LDO tokens worth $16.4 million in June 2025. This sale is part of a larger 70 million token position from 2021. Overall, 15% of all LDO tokens (about 150 million) will unlock by December 2025.

What this means:
There’s ongoing selling pressure from big holders. In August 2025 alone, 48.5 million LDO tokens moved to exchanges (CoinMarketCap). Since insiders still hold 64% of all tokens, more unlocks could push prices down unless demand grows.

3. Regulatory Clarity & Market Trends (Positive Effects)

Summary:
In August 2025, the SEC clarified that “ministerial” staking services aren’t securities if rewards go directly to users. This is good news for Lido. At the same time, Coinbase reported strong conditions for altcoins as ETH staking reached $41 billion in total value locked (TVL).

What this means:
LDO has become a way to invest in Ethereum staking growth. Its price rose 58% in August 2025 alongside ETH’s rally. However, Lido’s share of the ETH staking market dropped from 32.3% in 2023 to 24.4% due to competition from Rocket Pool and institutional options (Cryptotimes).

Conclusion

LDO’s future depends on balancing technical improvements with managing token supply from insiders. Governance upgrades and Ethereum’s growth offer upside, but Lido must handle selling pressure and defend its market position. Watch how Lido uses its 36% treasury fund for incentives without hurting current holders. Keep an eye on daily exchange flows and quarterly staking market share.

What are people saying about LDO?

The conversation around Lido DAO (LDO) is split between optimistic technical signs and concerns over large investor sell-offs. Here’s the overall picture:

1. A $2.55 price target is in play as total value locked (TVL) hits a record $38 billion.
2. The launch of Dual Governance helps offset a big $8.4 million sell-off by Paradigm.
3. Ethereum’s recent rally supports LDO’s role in liquid staking.
4. An emergency oracle vote shows the protocol’s ability to handle unexpected issues.

Deep Dive

1. @LidoFinance: Governance Upgrade Marks a Milestone – Positive

"All Scorecard items now marked 'Good' – Dual Governance enables stETH veto power & rage-quit exits."
– @LidoFinance (492K followers · 18M impressions · 2025-07-15 14:06 UTC)
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What this means: This is good news for LDO holders. The new governance system increases decentralization, which lowers regulatory risks and aligns with Ethereum’s community values. This could attract more institutional investors who want to stake Ethereum securely.

2. @WuBlockchain: Paradigm’s $8.4M LDO Sell-Off – Negative

"Paradigm transferred 10M LDO to exchanges, realizing $27.5M profit since 2021 OTC purchase."
– @WuBlockchain (327K followers · 2.1M impressions · 2025-06-10 01:49 UTC)
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What this means: This large sale puts downward pressure on LDO’s price. When big investors (often called whales) sell off large amounts, it can shake retail investors’ confidence, even if the project’s fundamentals remain strong.

3. @johnmorganFL: Technical Analysis Points to $2.55 Target – Positive

"LDO tests descending wedge resistance – breakout could mirror 2024’s 200% rally if $1.59 holds."
– @johnmorganFL (89K followers · 560K impressions · 2025-08-12 14:10 UTC)
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What this means: From a price chart perspective, LDO looks ready to break out higher if it stays above $1.59. This aligns with Ethereum’s recent price surge, suggesting traders expect LDO to follow Ethereum’s upward trend.

4. @LidoFinance: Emergency Oracle Vote – Mixed

"Emergency vote initiated after Chorus One key leak – other 8/9 nodes secure, stakers unaffected."
– @LidoFinance (492K followers · 9.2M impressions · 2025-05-11 11:54 UTC)
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What this means: The quick action to replace a compromised oracle key shows the protocol’s strength and responsiveness. However, it also highlights some risks related to relying on a small number of oracle nodes for critical data.

Conclusion

The outlook for Lido DAO is mixed. On one hand, Ethereum’s strong staking demand and governance improvements support LDO’s growth. On the other hand, large sell-offs by big holders create uncertainty. Watch the price range between $1.29 and $1.63 closely—breaking above this could push LDO toward the $2.55 target, while falling below might test support near $0.85. Keep an eye on Paradigm’s remaining 10 million LDO tokens and the Altcoin Season Index (currently 69, aiming for 75+) for signs of market rotation.

What is the latest news about LDO?

Lido DAO is making strategic changes and benefiting from clearer regulations while working on important technical improvements. Here are the key updates:

1. Workforce Reduction for Sustainability (August 4, 2025) – Lido DAO cut 15% of its staff to focus on long-term stability.
2. SEC Clarifies Staking Rules (August 5, 2025) – New regulatory guidance supports LDO’s liquid staking services.
3. Governance Upgrades Finalized (June 30, 2025) – New governance rules give stETH holders veto power to protect the community.

In-Depth Look

1. Workforce Reduction for Sustainability (August 4, 2025)

What happened:
Lido DAO reduced its team by 15% to improve efficiency during a positive market phase. Co-founder Vasiliy Shapovalov explained this was about managing costs, not performance problems. The goal is to focus more on core technical work and community projects. After the announcement, LDO’s price rose 4.3% but then dropped 21.6% over the week. This move is meant to support the project’s long-term health.

Why it matters:
In the short term, this is neither clearly good nor bad for LDO. Cutting staff helps control expenses but might slow down new developments. Lido remains focused on Ethereum staking, which currently holds $31 billion in total value locked (TVL), but there are risks in delivering on its plans. (Lido Finance)

2. SEC Clarifies Staking Rules (August 5, 2025)

What happened:
The U.S. Securities and Exchange Commission (SEC) clarified that liquid staking services like Lido’s are not considered securities if rewards are automatically passed to users. This announcement came after LDO’s price surged 55% in a month, helped by Ethereum’s price rally and growing interest from institutional investors.

Why it matters:
This is positive news for LDO. Clearer regulations reduce legal uncertainty, which could encourage more institutions to use Lido’s staking tokens. LDO’s price tends to move about 1.5 times as much as Ethereum’s, so if ETH keeps rising, LDO could see bigger gains. (Coinbase)

3. Governance Upgrades Finalized (June 30, 2025)

What happened:
Lido DAO introduced “Dual Governance,” a system that allows holders of stETH (a token representing staked ETH) to veto proposals through a timed process. If 10% of stETH holders oppose a proposal, it can be blocked using a “rage quit” feature. This change aims to make governance more decentralized and fair.

Why it matters:
This upgrade is a strong positive for Lido. It helps align the interests of stakers and token holders, reducing the risk that a small group could control decisions. This builds trust, especially for institutional investors. However, the new system’s complexity might slow down how quickly decisions are made. (Lido Finance)

Conclusion

Lido DAO is balancing cost-cutting, regulatory progress, and governance improvements to maintain its leadership in Ethereum staking. While reducing staff shows caution, clearer SEC rules and better governance strengthen Lido’s position. The big question is whether LDO can use these changes to regain its 32% share of the staking market as competition grows.

What is expected in the development of LDO?

Lido DAO is making steady progress with these key updates:

1. Strategic Priorities Alignment (August 14, 2025) – Shared plans and financial updates in a Tokenholder Update Call.
2. CSM v2 Launch (July 2025) – Increased community staking limits and improved governance rules.
3. Triggerable Withdrawals (July 2025) – Enabled users to exit validators without needing permission, thanks to EIP-7002.

In-Depth Look

1. Strategic Priorities Alignment (August 14, 2025)

What happened:
On August 14, 2025, Lido held its first Tokenholder Update Call to discuss how the LDO token’s economics align with the overall success of the protocol. Topics included managing the treasury, fee structures, and making governance more efficient.

Why it matters:
This update shows Lido’s leadership is thinking ahead, which is good for long-term stability. However, there are no immediate changes that would impact LDO’s value right now. Clear financial plans could boost investor confidence, but delays in action might pose risks.

2. CSM v2 Launch (July 2025)

What happened:
In July 2025, the Community Staking Module version 2 was approved. This raised the cap on how much community validators can stake to 10% of Lido’s total stake. It also introduced a system to identify stakers, helping to make the network more decentralized (Lido Finance).

Why it matters:
This is a positive step for LDO because it reduces dependence on a few centralized node operators. That helps address regulatory concerns and censorship risks. More community involvement could also encourage wider use of stETH, Lido’s staking token.

3. Triggerable Withdrawals (July 2025)

What happened:
Also in July 2025, Lido launched Triggerable Withdrawals based on EIP-7002. This feature lets any user start the process to exit a validator through Lido’s smart contracts, without needing approval from node operators (Lido Finance).

Why it matters:
This improvement gives users more control and makes it easier to withdraw funds. It strengthens Lido’s position compared to competitors like Rocket Pool. However, how much this feature will be used remains to be seen.

Summary

Lido DAO is focusing on making its platform more decentralized and user-friendly. The CSM v2 and Triggerable Withdrawals updates tackle important trust and control issues. The August 2025 strategic update suggests a closer link between the LDO token and the protocol’s success, but timelines for these changes are still flexible. Going forward, Lido will need to balance encouraging decentralization with meeting the liquidity needs of stETH holders in a competitive staking market.

What updates are there in the LDO code base?

Lido DAO’s software updates focus on making the platform more decentralized and secure.

1. CSM v2 & Triggerable Withdrawals (July 2025) – Improves staking options and community control.
2. Scorecard Completion (July 15, 2025) – Fully aligns with Ethereum’s decentralization goals.
3. Emergency Oracle Fix (May 11, 2025) – Quickly addressed a security issue from a node operator breach.

Deep Dive

1. CSM v2 & Triggerable Withdrawals (July 2025)

What happened: In July 2025, Lido rolled out Community Staking Module version 2 (CSM v2) and a new feature called Triggerable Withdrawals. CSM v2 increases the maximum stake any community member can hold to 10% of all Lido stakes, allowing more people to participate. Triggerable Withdrawals let any user request a validator to exit through Lido’s withdrawal system, based on Ethereum’s EIP-7002 standard.

Why it matters: This upgrade is good news for LDO holders because it reduces dependence on a few centralized node operators, gives users more control over their staked assets, and strengthens Lido’s role as an open, permissionless staking platform. (Source)

2. Scorecard Completion (July 15, 2025)

What happened: Lido completed its decentralization Scorecard by marking all categories as “Good” or “Okay.” One key upgrade is Dual Governance, which lets stETH holders either delay proposals if at least 1% oppose or trigger a “rage quit” if 10% oppose. The “rage quit” temporarily blocks governance until dissenting members leave.

Why it matters: This change is somewhat positive for LDO holders. It reduces the risk of governance being controlled by a small group but adds some complexity. Stakers now have veto power, which could attract more cautious institutional investors. (Source)

3. Emergency Oracle Fix (May 11, 2025)

What happened: After a private key leak from a Chorus One oracle, Lido DAO quickly voted to replace the compromised node. Thanks to the protocol’s 5-of-9 multisignature security setup, the issue was contained without affecting stakers.

Why it matters: This is neutral news for LDO holders. It shows Lido’s ability to respond quickly to security threats but also highlights the risks tied to centralized node operators. The fix reinforces Lido’s commitment to security. (Source)

Conclusion

Lido DAO’s recent updates focus on decentralization, giving users more control, and responding quickly to threats. While new governance rules might slow down decision-making, they align with Ethereum’s core values and could build long-term trust. The big question: How will these changes affect Lido’s market share compared to more centralized staking services?