What could affect the price of LDO?
LDO’s price depends on governance changes, Ethereum staking demand, and regulatory updates.
- Dual Governance rollout – Positive if it balances power within the DAO.
- Ethereum ETF inflows – Could increase Lido’s total value locked (TVL) and LDO’s usefulness.
- Whale activity – Mixed signals: recent large buys show confidence, but token unlocks may lead to selling pressure.
Deep Dive
1. Dual Governance Activation (Mixed Impact)
Overview:
Lido’s Dual Governance system launched in July 2025. It allows stETH holders to block proposals temporarily or exit the system through a “rage quit” option. This reduces the risk of a few parties controlling governance but adds some complexity.
What this means:
In the short term, this change might cause uncertainty as users adjust. Over time, better alignment between stETH stakers and LDO holders could make the protocol stronger and more appealing to large Ethereum investors.
2. Ethereum Staking Demand (Bullish)
Overview:
Lido’s TVL reached $41 billion in August 2025, driven by Ethereum’s price rally. Since June, ETH’s price rose 126%, and institutional investments in Ethereum ETFs reached $24.27 billion, boosting demand for stETH.
What this means:
More Ethereum staking means more fees for Lido (10% of staking rewards), which can increase LDO’s value. Keep an eye on ETH’s $4,500 support level—if it falls below this, Lido’s TVL might face pressure.
3. Regulatory Clarity & Whale Moves (Mixed)
Overview:
In August 2025, the SEC clarified that “ministerial” liquid staking is not considered a security (Coinbase report). Meanwhile, big investors like Arthur Hayes bought $1.83 million worth of LDO in August, but Paradigm Capital sold $10 million in May.
What this means:
Regulatory clarity supports Lido’s business model, but large token unlocks (over 36% of supply held in treasury) and big sell-offs could limit gains. Watch exchange inflows for signs of selling pressure via 0xC4Db.
Conclusion
LDO’s future depends on Ethereum staking growth balanced against governance changes and token supply factors. Dual Governance and ETF-driven demand offer growth potential, but token unlocks and concentrated holdings (top 10 wallets hold about 64%) create risks. Key question: Can stETH’s market share bounce back from 24.4% amid rising competition?
What are people saying about LDO?
The Lido DAO (LDO) community is divided between optimism for a price breakout and concerns about large holders selling. Here’s what’s trending:
- Analysts are targeting $2.55 after Lido became profitable
- Paradigm Capital’s $8.4 million token sale raises bearish concerns
- The launch of Dual Governance is seen as a win for decentralization
Deep Dive
1. @johnmorganFL: Bullish $2.55 price target
“LDO price jumped 70% in August as Lido posted its first profit ($1 million net income). A technical pattern called a descending wedge breakout points to $2.55 next.”
– @johnmorganFL (89K followers · 2.1M impressions · 2025-08-12 14:10 UTC)
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What this means: Positive technical signals combined with Lido’s shift from $153 million losses in 2022 to profitability could keep momentum going if demand for Ethereum staking grows.
2. @WuBlockchain: Paradigm’s large sell-off signals bearish trend
“Paradigm moved 10 million LDO tokens worth $8.4 million to exchanges and sold 50 million at $1.31 profit earlier this year. Buyers who purchase over-the-counter (OTC) often sell quickly after lockup periods.”
– @WuBlockchain (327K followers · 680K impressions · 2025-06-10 01:49 UTC)
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What this means: This is a bearish sign. Similar sales in 2024 led to a 24% price drop. Paradigm still holds 20 million LDO from their original 70 million, which could lead to more selling pressure.
3. @LidoFinance: Governance upgrade seen as positive
“Dual Governance is now live: stETH holders can veto proposals or trigger exits if 10% oppose decisions.”
– @LidoFinance (612K followers · 1.9M impressions · 2025-07-15 14:06 UTC)
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What this means: This is a positive long-term development. It reduces the risk of governance being controlled by a few large holders and better aligns the interests of LDO holders and stETH stakers.
4. @mkbijaksana: Mixed outlook tied to Ethereum’s price
“LDO bounced back to 1.374. If Ethereum stays strong, LDO could reach 19.59.”
– @mkbijaksana (42K followers · 118K impressions · 2025-08-24 17:44 UTC)
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What this means: This is a very aggressive prediction (over 1,400% upside) that depends on a major rally in Ethereum. Currently, LDO’s price moves about 1.3 times as much as Ethereum’s (based on Coinbase data).
Conclusion
The outlook for LDO is mixed. Positive governance changes and growth in Ethereum staking are balanced by concerns over large token sales and high valuations. Keep an eye on the $1.25 support level (current price) and trends in Ethereum’s staking rewards, as these directly affect Lido’s revenue from fees. Also, watch Paradigm’s remaining 20 million LDO tokens for potential market impact.
What is the latest news about LDO?
Lido DAO is making moves with new buyback plans and regulatory updates, even as big investors adjust their holdings. Here’s the latest:
- Proposed Triggerable Buybacks (August 14, 2025) – Lido is considering using stETH reserves to buy back LDO tokens, which could reduce the number of tokens available.
- SEC Clarifies Staking Rules (August 5, 2025) – The SEC says liquid staking services aren’t securities if rewards are given out automatically without active management.
- 15% Staff Reduction (August 4, 2025) – Lido Labs cut 15% of its workforce to focus on long-term sustainability.
Deep Dive
1. Proposed Triggerable Buybacks (August 14, 2025)
What’s happening:
Lido co-founder Vasiliy Shapovalov shared plans for a “triggerable” buyback system during a recent update call. This system would use stETH (a token representing staked Ethereum) reserves to buy back LDO tokens through the NEST framework. The goal is to reduce the number of LDO tokens in circulation, which could help increase their value. The team expects clearer regulatory guidance in the next 2–3 months before making a formal proposal and seeking community input.
Why it matters:
Buybacks can help make LDO tokens scarcer, potentially boosting their value as the protocol grows. But this depends on getting the green light from regulators and agreement from the community.
(Lido Finance)
2. SEC Clarifies Staking Rules (August 5, 2025)
What’s happening:
The U.S. Securities and Exchange Commission (SEC) clarified that liquid staking services like Lido’s are not considered securities if they simply distribute rewards automatically, without active management. This update comes as Lido’s market share dropped to 24.4%, facing competition from institutional players like Figment.
Why it matters:
This reduces regulatory uncertainty, which is good news. However, Lido still faces competitive pressure. The protocol’s total value locked (TVL) remains strong at $41 billion (as of August 15), but fluctuations in Ethereum’s price could affect staking demand.
(The Defiant)
3. 15% Staff Reduction (August 4, 2025)
What’s happening:
Lido Labs announced a 15% cut in staff across development and ecosystem teams to focus on long-term growth. This decision came after a 21.6% drop in LDO’s price over a week but was followed by a 4.3% price rebound after the announcement.
Why it matters:
In the short term, layoffs can create uncertainty and negative sentiment. But in the long run, the savings could be used to fund important upgrades like Dual Governance, which might strengthen the protocol. How the market reacts will depend on how well Lido manages these changes.
(CoinMarketCap)
Conclusion
Lido DAO is balancing positive developments like potential buybacks and clearer regulations with challenges such as competition and workforce cuts. The next few months will be crucial to see if governance improvements and Ethereum’s market trends can help Lido maintain its position. Will stETH regain its leading role as Ethereum ETFs become more popular?
What is expected in the development of LDO?
Lido DAO’s roadmap highlights plans to improve governance, encourage liquidity, and adjust its strategy for the future.
- Triggerable Buyback Proposal (Q4 2025) – Using staking rewards to buy back LDO tokens, aiming to strengthen the token’s value.
- Regulatory Framework Finalization (November 2025) – Clarifying rules around staking to support wider adoption.
- CSM v3 Development (2026) – Expanding decentralized validator networks to improve security and decentralization.
Deep Dive
1. Triggerable Buyback Proposal (Q4 2025)
Overview
Lido DAO is considering a proposal to use rewards from stETH (their staking token) to automatically buy back LDO tokens from the market. This would connect the income generated from staking directly to increasing the value of LDO, addressing past concerns about how useful the token is (Crypto.News).
What this means
This is generally positive for LDO because it ties the protocol’s earnings to demand for the token. However, there’s a risk that buybacks could give too much influence to large token holders, potentially centralizing control.
2. Regulatory Framework Finalization (November 2025)
Overview
After the SEC clarified in August 2025 that non-custodial staking services like Lido’s are not securities, Lido is working with legal experts to finalize a compliance framework by November. This step could open the door for institutional investors to use stETH confidently.
What this means
This is a neutral to positive development. Clear regulations reduce legal risks but might also introduce stricter rules for node operators, which could slow down growth.
3. CSM v3 Development (2026)
Overview
Following the July 2025 launch of CSM v2, which raised the community staking limit to 10%, Lido plans to release CSM v3 with features like:
- Allowing anyone to become a validator without permission
- Better insurance pools to protect against penalties (slashing)
- Enabling stake delegation across different blockchains
What this means
This is a positive long-term move because it reduces dependence on centralized operators, making the network more secure and decentralized. However, there are short-term risks related to potential bugs or issues during the upgrade.
Conclusion
Lido’s roadmap aims to balance short-term improvements in token value with long-term goals of decentralization and regulatory compliance. Maintaining its 24% share of Ethereum staking (Crypto Times) while rolling out these plans will be key. It remains to be seen how changes in proof-of-stake dynamics and competition will affect Lido’s plans to grow across multiple blockchains.
Why did the price of LDO fall?
Lido DAO (LDO) dropped 5.96% in the last 24 hours to $1.26, performing worse than the overall crypto market, which fell by 2.04%. The main reasons include big investors selling off, increased competition in staking, and technical price resistance.
- Big Investors Selling – Paradigm Capital and others sold over $21 million worth of LDO recently.
- Losing Market Share – Lido’s share of Ethereum staking dropped to 24.4% as competitors gain ground.
- Price Resistance – LDO couldn’t break past $1.50, causing traders to take profits.
Deep Dive
1. Big Investors Selling (Negative Impact)
Overview:
Data from the blockchain shows that Paradigm Capital and other large investors moved about 48.48 million LDO tokens (worth $45.6 million) to exchanges in the past month, including an $8.4 million transfer on June 10. These sales match up with LDO’s 22% drop over the past month.
What this means:
When big investors sell large amounts, it puts pressure on the price and can shake the confidence of smaller investors. Since there are 895 million LDO tokens circulating, even moderate selling by big players can have a big impact. Past events, like a 24% price drop in May 2025 after $21 million in sales, show this pattern.
What to watch:
Look for more tokens moving to exchanges from wallets like 0xC4Db, which has been used for recent big sales.
2. More Competition in Staking (Mixed Impact)
Overview:
Lido’s share of the Ethereum staking market has fallen to 24.4% from 32.3% last year, as other companies like Figment and exchange-backed staking services grow.
What this means:
Lido is still the biggest liquid staking provider, but losing market share raises concerns about how well it can keep charging fees. On the bright side, BlackRock’s plan to launch an Ethereum ETF that includes staking might boost demand for Lido’s services.
What to watch:
Keep an eye on progress with BlackRock’s ETF and Lido’s total value locked (TVL) in Q3, which is currently $41 billion.
3. Price Resistance & Market Mood (Negative Impact)
Overview:
LDO couldn’t stay above the $1.50 resistance level reached on August 15 and dropped below its 30-day moving average of $1.26. The Relative Strength Index (RSI) at 57.98 shows weakening buying momentum, and the MACD indicator (+0.0092) suggests the bullish trend is fading.
What this means:
After an 86% price increase over 90 days, many traders took profits. This was made worse by the overall crypto market mood being “Neutral” (52 out of 100 on the fear/greed index). Lower trading volume (down 40.58% in 24 hours) also made price swings more volatile.
Key level to watch:
If LDO closes below $1.23 (a key Fibonacci retracement level), it could drop further toward $1.13.
Conclusion
LDO’s recent price drop is due to a combination of big investors selling, worries about staking competition, and losing technical momentum. While Lido’s core platform remains strong with a record $41 billion in TVL, short-term price action depends on stopping large sell-offs and holding the $1.23 support level.
Key question: Will upcoming governance changes, like triggerable withdrawals, help restore confidence among stakers despite the shrinking market share?
What updates are there in the LDO code base?
Lido DAO’s latest software updates improve decentralization and give users more control through governance enhancements and protocol improvements.
- Triggerable Withdrawals (July 23, 2025) – Allows anyone to initiate validator exits on Ethereum without needing permission, thanks to Ethereum’s EIP-7002 standard.
- Community Staking Module v2 (July 21, 2025) – Increases staking limits and adds community-based protections to prevent abuse.
- Dual Governance Activation (June 30, 2025) – Gives stETH holders the power to delay or block DAO proposals, adding an extra layer of oversight.
Deep Dive
1. Triggerable Withdrawals (July 23, 2025)
What it is: This update lets any user trigger validator exits through Lido’s withdrawal contract. Previously, exits often required centralized approval, but now this process is permissionless and automated, based on Ethereum’s EIP-7002 standard.
Why it matters: This change supports Lido DAO’s goal of decentralization by reducing reliance on centralized parties. It aligns with Ethereum’s principle of trustless participation, which could attract more users who want full control over their staking activities. (Source)
2. Community Staking Module v2 (July 21, 2025)
What it is: This upgrade raises the maximum stake that community members can hold to 10% of Lido’s total stake. It also introduces a system to identify and prevent Sybil attacks—where someone pretends to be multiple users to gain unfair influence.
Why it matters: This is a balanced update. It allows more community participation and growth but adds safeguards to reduce risks like collusion or manipulation. While node operators get more flexibility, the new checks might slow down how quickly new stakers join. (Source)
3. Dual Governance Activation (June 30, 2025)
What it is: This feature adds dynamic time delays to governance decisions. If at least 1% of stETH holders oppose a proposal, its execution is paused for 5 to 45 days. If opposition reaches 10%, the proposal is frozen entirely, allowing dissenters to exit (“rage quit”).
Why it matters: This strengthens Lido’s governance by preventing any single group from taking control too easily. It makes the system more secure and attractive to larger, institutional investors. However, the added complexity might be challenging for casual users to navigate. (Source)
Conclusion
Lido DAO is moving toward greater decentralization with these updates. Triggerable Withdrawals and Dual Governance reduce centralized control points, while the Community Staking Module v2 balances growth with security. As competitors adopt similar features, it will be interesting to see how these changes affect Lido’s position as a leader in liquid staking.