What could affect the price of LDO?
Lido DAO's (LDO) price is currently caught between promising protocol upgrades and ongoing risks that could affect its stability.
- Dual Governance Launch – Improved decentralization may attract more institutional investors
- Treasury Token Unlocks – Managing 36% of the token supply remains a key factor for price swings
- Whale Buying vs. VC Selling – Large recent purchases clash with venture capital sell-offs
Deep Dive
1. Protocol Upgrades Improve Governance (Positive for Price)
Overview: In July, Lido DAO introduced Dual Governance, giving stETH holders the power to block proposals. If 1% of stETH holders object, proposals are delayed by 5 to 45 days, and if 10% oppose, proposals can be fully stopped. This system helps prevent hostile takeovers and addresses past concerns about too much central control (Lido Finance).
What this means: By better aligning the interests of stakers and token holders, Lido reduces risks that previously scared off big investors. The protocol’s record $38 billion in total value locked (TVL) (source) shows strong market trust, and these governance changes could strengthen Lido’s leadership in liquid staking, supporting LDO’s price.
2. Treasury Token Supply Could Pressure Price (Potential Risk)
Overview: The Lido DAO still controls 36.32% of all LDO tokens (about 326 million), with no set schedule for releasing them. Recent cuts of 15% in staff (source) suggest the DAO might sell tokens to fund operations, which could increase supply and put downward pressure on price.
What this means: Although the community votes on how tokens are distributed, unexpected sales from development grants or liquidity incentives could overwhelm the current daily trading volume of $40 million. After a 43% price increase over the last 90 days, LDO could face profit-taking if more tokens enter the market.
3. Whale Buying and VC Selling Show Mixed Signals
Overview: In August, a large investor (whale) bought 2.31 million LDO tokens (worth $3.11 million), while Paradigm Capital, a venture capital firm, sold 10 million tokens (worth $8.4 million). At the same time, derivatives trading interest increased by 32% to $225 million (AMBCrypto).
What this means: These opposing moves highlight uncertainty about LDO’s future after Ethereum’s Merge upgrade. While demand for staking grows—Lido controls 32% of all staked ETH—early VC sell-offs might limit price gains until new institutional buyers step in.
Conclusion
LDO’s future depends on whether the new governance rules and Ethereum’s growing staking ecosystem can outpace the risks from increased token supply and early investor exits. The 200-day exponential moving average (EMA) at $1.14 is a key resistance level—closing above it consistently could signal stronger upward momentum. The big question: can Lido’s updated tokenomics turn its $38 billion TVL dominance into lasting demand for LDO?
What are people saying about LDO?
Talk around Lido DAO (LDO) swings between optimism and caution. Here’s what’s trending:
- Profitability fuels $2.55 price target predictions
- Large investors sell $8.4M amid governance concerns
- Traders focus on $1.14 as a key price point
Deep Dive
1. @johnmorganFL: “Lido flips profitable – rally incoming?”
“LDO price jumped 70% in August after Lido DAO reported its first $1 million profit following years of losses… Analysts eye $2.55 if Ethereum remains strong”
– @johnmorganFL (89K followers · 2.1M impressions · 2025-08-12)
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What this means: This is positive for LDO because turning a profit shows its decentralized finance (DeFi) model is working and could attract big institutional investors who stake Ethereum. However, reaching $2.55 (about 138% higher than current prices) depends on Ethereum’s continued strength.
2. @WuBlockchain: “Paradigm dumps $8.4M LDO”
“Paradigm Capital moved 10 million LDO tokens worth $8.4 million to exchanges – part of a trend where institutions sold 48.5 million LDO ($45.6 million) in the past 30 days”
– @WuBlockchain (632K followers · 4.8M impressions · 2025-06-10)
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What this means: This puts downward pressure on LDO’s price because large holders selling tokens can create resistance to price gains. Paradigm bought their tokens at an average price of $0.76, so even at today’s $1.07 price, they’re making a 41% profit.
3. @CMC Trader: “$1.14 breakout watch”
“LDO needs to hold support at $1.07 and break resistance at $1.14 to confirm a bullish trend. If it fails, the price could drop to the $0.98 support zone”
– CMC Community Post (366K views · 2025-07-27)
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What this means: The technical outlook is mixed. The 24-hour chart shows a bearish signal where price is rising but momentum is slowing down. However, more traders are entering positions, suggesting they expect price swings soon.
Conclusion
Opinions on LDO are divided. Supporters highlight its first profitable month and strong position in Ethereum staking with $38 billion in total value locked (TVL). Critics point to large investors selling and regulatory risks from California’s recent DAO liability ruling. Keep an eye on the $1.14 price level: closing above it daily could trigger automated buying, while failing to break it might signal more selling ahead.
What is the latest news about LDO?
Lido DAO is managing a mix of retail investor enthusiasm and large-holder sell-offs while rolling out important governance improvements. Here’s a quick summary of recent developments:
- Retail Buying Meets Big Holder Selling (September 18, 2025) – LDO’s price jumped 13% to $1.35 before big holders started taking profits.
- NEST Buyback Proposal Stirs Discussion (September 11, 2025) – The DAO is considering using stETH from its treasury to buy back LDO tokens, sparking mixed opinions.
- Governance Upgrades Implemented (July 23, 2025) – New features to decentralize staking and improve withdrawal processes went live.
In-Depth Look
1. Retail Buying Meets Big Holder Selling (September 18, 2025)
What happened:
LDO reached a three-week high of $1.35, fueled by increased buying from everyday investors and a 105% jump in trading volume. The total value of assets staked on Lido rose to $38.84 billion, up 1.8% in one day, and the protocol’s revenue increased by 7.7% to $9 million. Despite this, large holders (often called “whales”) sold 939,000 LDO tokens after the price surge, resulting in a net outflow of 116,000 tokens.
Why it matters:
The buying momentum from retail investors is a positive sign in the short term, but the selling by whales could cause price swings. Technical indicators like the Stochastic RSI at 72 suggest the token is overbought, with $1.33 acting as a key support level. (AMBCrypto)
2. NEST Buyback Proposal Stirs Discussion (September 11, 2025)
What happened:
Lido contributors proposed a new plan called Network Economic Support Tokenomics (NEST). This plan would use stETH tokens from the DAO’s treasury to buy back LDO tokens. Unlike typical buybacks funded by revenue, this approach would use treasury reserves—currently holding 26,816 stETH, worth about $115 million. Some community members worry this prioritizes token price support over the long-term health of the protocol.
Why it matters:
This buyback could help stabilize LDO’s price, which has dropped 78% from its all-time high. However, it risks draining the treasury’s assets. The debate echoes past controversies like Uniswap’s 2024 fee switch, highlighting the challenge of balancing financial strategies with sustainable growth. (Blockworks)
3. Governance Upgrades Implemented (July 23, 2025)
What happened:
Lido launched Community Staking Module v2 (CSM v2), which increases the maximum stake per validator to 10% of the total stake. They also introduced Triggerable Withdrawals through EIP-7002, making it easier for users to exit staking positions. These upgrades aim to make node operations more decentralized and withdrawals smoother.
Why it matters:
Greater decentralization aligns Lido more closely with Ethereum’s principles and strengthens its long-term position. However, these changes haven’t yet reversed LDO’s recent price decline of 15% over the past week. The focus now is on how these upgrades impact user adoption. (Lido Finance)
Conclusion
Lido DAO is balancing optimism from retail investors, caution from large holders, and important governance improvements. While short-term price movements depend heavily on whale activity, the success of the NEST buyback proposal could reshape how token economics are managed. The key question remains: will the protocol’s revenue growth support these buybacks sustainably, or is this just a temporary solution?
What is expected in the development of LDO?
Lido DAO’s roadmap is focused on improving governance and making the protocol more resilient.
- Dual Governance Rollout (July 2025) – New rules let stETH holders delay or block proposals.
- CSM v2 Implementation (July 2025) – Expands community staking limits and updates the framework.
- Tokenholder Strategy Session (August 2025) – Discusses future plans and ways to increase LDO token value.
Deep Dive
1. Dual Governance Rollout (July 2025)
Overview:
Approved through an Aragon vote in June 2025, Dual Governance introduces a system where stETH holders can slow down or stop proposals. If 1% of stETH holders oppose a proposal, its execution is delayed by 5 to 45 days. If 10% oppose, governance freezes until those dissenting leave.
What this means:
This is positive for LDO because it reduces the risk of a small group controlling decisions and better aligns the interests of stakers and token holders. However, the added complexity might slow down decision-making in the short term.
2. CSM v2 Implementation (July 2025)
Overview:
The Community Staking Module version 2, approved in July 2025, raises the staking limit to 10% of Lido’s total stake and adds a framework to identify community stakers, helping decentralize the network (source).
What this means:
This is neutral to positive, as more participation strengthens the network but could reduce the influence of current node operators. Key things to watch are the growth of independent validators and the liquidity of stETH.
3. Tokenholder Strategy Session (August 2025)
Overview:
On August 14, 2025, Lido Labs held its first Tokenholder Update Call to review finances, protocol goals, and ways to connect LDO’s value to the protocol’s success (announcement).
What this means:
This is positive if it leads to changes like fee-sharing or token buybacks. But if actions are delayed, it could hurt community confidence.
Conclusion
Lido DAO is focusing on stronger governance and better alignment with stakeholders. The Dual Governance and CSM v2 upgrades address concerns about decentralization. The August strategy session suggests possible improvements to how LDO tokens are used. These changes could help Lido stay a leader in liquid staking as competition grows.
What updates are there in the LDO code base?
Lido DAO’s latest updates focus on making the platform more decentralized and secure.
- Triggerable Withdrawals (July 23, 2025) – Anyone can now initiate validator exits using smart contracts.
- CSM v2 Rollout (July 21, 2025) – Community stakers’ share limit doubles to 10% of the total stake.
- Dual Governance Activation (June 30, 2025) – stETH holders gain the power to veto DAO proposals.
Deep Dive
1. Triggerable Withdrawals (July 23, 2025)
What it is: This feature lets anyone start the process for validators to exit through Lido’s Withdrawal Contract, following Ethereum’s EIP-7002 standard.
Previously, only certain centralized parties could trigger these exits. Now, any user or protocol can call the withdrawal process. Validator keys are checked on the blockchain to make sure only valid exits happen.
Why it matters: This change reduces central control and gives stakers more freedom to withdraw their ETH without waiting on node operators. It’s a positive step for Lido DAO’s token (LDO) because it increases user control and lowers risks tied to centralization.
(Source)
2. CSM v2 Rollout (July 21, 2025)
What it is: The Community Staking Module (CSM) has been updated to allow community stakers to hold up to 10% of Lido’s total stake, up from 5%. It also adds a system to identify stakers and includes protections like slashing insurance and a reputation system for node operators.
Why it matters: While this may not immediately impact LDO’s price, it strengthens decentralization over time. Smaller validators get more influence, which could encourage more people to participate in staking.
(Source)
3. Dual Governance Activation (June 30, 2025)
What it is: This update introduces dynamic timelocks that let stETH holders delay or block governance proposals. If 1% of stETH holders oppose a proposal, its execution is delayed by 5 to 45 days. If opposition reaches 10%, governance freezes until dissenting users exit.
Why it matters: This is good news for LDO because it protects against risky or unpopular changes by giving stETH holders a stronger voice. It helps keep the protocol stable and resistant to hostile takeovers.
(Source)
Conclusion
Lido DAO is moving toward giving users more control over their staked ETH, increasing participation from smaller validators, and strengthening governance protections. These updates help address challenges Ethereum faces with network rigidity while balancing decentralization and growth. Given stETH’s leading role in liquid staking, it will be interesting to see how these changes affect Lido’s dominant 60%+ market share as competitors like EigenLayer gain traction.
Why did the price of LDO fall?
Lido DAO (LDO) dropped 2.26% to $1.07 in the last 24 hours, underperforming the overall crypto market, which fell just 0.29%. The main reasons for this decline are:
- Whale Profit-Taking – Large investors sold off after LDO reached a 3-week high of $1.35.
- Technical Weakness – Indicators like RSI and MACD show bearish signals.
- Market Caution – The Crypto Fear & Greed Index is at "Fear" (34), indicating reduced risk appetite.
Deep Dive
1. Whale Profit-Taking (Negative Impact)
What happened:
Between September 17 and 18, big holders (whales) sold about 939,300 LDO tokens, worth over $1 million, after the price hit $1.35. This reversed earlier buying activity where 3.35 million LDO were accumulated (AMBCrypto). The net flow of tokens to exchanges was negative $1.15 million, showing increased selling pressure.
Why it matters:
Whales took advantage of gains made by smaller investors, creating resistance at higher price levels. This shift from buying to selling suggests a short-term bearish outlook.
What to watch:
Keep an eye on whale wallet balances. Continued selling by whales could keep prices under pressure.
2. Technical Breakdown (Bearish Signals)
What happened:
LDO’s price fell below important support levels:
- 7-day Simple Moving Average (SMA) at $1.12, now acting as resistance
- Fibonacci 23.6% retracement level at $1.28
The Relative Strength Index (RSI) is at 40.63, close to oversold territory, and the MACD indicator confirms downward momentum.
Why it matters:
Traders relying on technical analysis likely sold their positions as key supports failed, increasing selling pressure. If LDO falls below $1.04 (a recent low), it could lead to further declines toward the 200-day SMA at $0.97.
What to watch:
The $1.04 level is critical. A break below this could signal a deeper correction.
3. Broader Market Sentiment (Mixed Effects)
What happened:
The overall crypto market dipped slightly by 0.29% in 24 hours, while Bitcoin’s dominance rose to 57.91%. The Crypto Fear & Greed Index remains in the "Fear" zone at 34, showing that investors are cautious.
Why it matters:
LDO’s weaker performance compared to the broader market shows it’s sensitive to shifts in investor focus, with traders preferring safer assets like Bitcoin and Ethereum over mid-sized altcoins like LDO.
Conclusion
Lido DAO’s recent price drop is mainly due to profit-taking by large holders after a local peak, technical breakdowns, and a cautious market mood. Although staking activity remains strong with $38.8 billion in total value locked (TVL), short-term price movements will depend on whale behavior and Bitcoin’s stability.
Key point to watch: Can LDO hold the $1.04 support level, or will bearish trends push it down further toward $0.97?