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Why did the price of LDO go up?

Lido DAO (LDO) increased by 4.74% in the past 24 hours, outperforming the overall crypto market, which rose by 1.03%. This growth is driven by excitement around a VanEck staked Ethereum ETF filing, strong technical signals, and smart token management strategies.

  1. ETF Catalyst – VanEck’s proposed ETF linked to Lido renews interest from institutional investors.
  2. Buyback Program – Lido DAO is using its treasury to buy back tokens, reducing the number of LDO coins available.
  3. Technical Strength – Breaking through important price levels suggests positive momentum.

Deep Dive

1. VanEck’s Staked Ethereum ETF Filing (Positive Outlook)

Overview:
On October 2, VanEck filed to create a Lido Staked Ethereum ETF, which would allow investors to gain regulated exposure to rewards from staked Ethereum (stETH). Since Lido controls over 30% of Ethereum staking, it’s a key player for institutional investment products.

What this means:

What to watch:
The U.S. Securities and Exchange Commission’s (SEC) feedback on this ETF filing, expected in the last quarter of 2025.

2. Strategic Buybacks & Tokenomics (Mixed Effects)

Overview:
In September, Lido DAO started a buyback program, using up to 70% of its revenue to purchase LDO tokens from the market.

What this means:

What to watch:
Changes in the amount of LDO held on exchanges—if more tokens are moved to exchanges, it could signal selling pressure.

3. Technical Breakout & Market Sentiment (Bullish Signs)

Overview:
LDO’s price has moved above its 50-day simple moving average (SMA) at $1.20 and broken out of a downward wedge pattern. Important price points include:

What this means:

What to watch:
If LDO closes above $1.28 on a daily basis, the next target could be $1.44 (127.2% Fibonacci extension).

Conclusion

LDO’s recent price increase is driven by optimism around the VanEck ETF, ongoing token buybacks, and positive technical signals. Although some large holders are selling, the ETF filing and buyback program provide strong support for the token.

Key points to monitor: The SEC’s decision on the staked Ethereum ETF and whether LDO can maintain support above $1.23.


What could affect the price of LDO?

LDO balances innovation on the blockchain with some market risks.

  1. VanEck’s stETH ETF filing – Could open the door for big investors, boosting demand (positive)
  2. Dual Governance activation – Makes decision-making safer but more complex (mixed)
  3. Treasury token unlocks – 36% of supply controlled by the DAO treasury risks lowering prices if sold off (negative)

Deep Dive

1. Staked ETH ETF Momentum (Positive Impact)

Overview:
VanEck, a well-known investment firm, filed for a Lido Staked Ethereum ETF on October 2. This ETF would let traditional investors buy into Lido’s stETH in a regulated way. If approved, it could bring a lot of new money into Lido’s ecosystem, increasing the protocol’s revenue, which is currently about $9 million per month.

What this means:
More ETF investments would likely increase the use of stETH, which means more fees for Lido and higher value for LDO, the governance token. In the past, rumors about similar ETFs caused LDO’s price to jump about 20% between October 3 and 6.

2. Governance & Supply Dynamics (Mixed Impact)

Overview:
In July, Lido introduced a Dual Governance system. This lets stETH holders block proposals they don’t like, reducing the chance of hostile takeovers. However, 36% of all LDO tokens are held in the DAO treasury without a fixed schedule for releasing them, which could lead to selling pressure.

What this means:
Better governance builds trust over time, but if the DAO treasury sells large amounts of LDO (like the 10 million tokens moved by Paradigm Capital in June), it could push prices down. Keep an eye on governance proposals to see how the treasury plans to manage liquidity.

3. Ethereum Staking Competition (Negative Risk)

Overview:
Lido currently controls about 32% of all staked ETH, worth $38 billion. But competitors like EigenLayer, which offers restaking options, and Rocket Pool, known for lower fees, are gaining attention.

What this means:
If Lido loses market share, it could hurt LDO’s price. However, Lido is working on improvements like onboarding new validators with CSM v2 and integrating with Layer-2 solutions like Linea to stay competitive.

Conclusion

LDO’s future depends on whether ETF approvals can offset the risks from increased token supply. The $1.24 price level is an important support point to watch. Investors should look out for the SEC’s decision on VanEck’s ETF by November and upcoming votes on how the DAO treasury will spend funds—whether on buying back tokens or funding growth initiatives.


What are people saying about LDO?

The Lido DAO (LDO) community is divided between optimism about upcoming protocol improvements and concerns over large investors selling off their holdings. Here’s what’s making headlines:

  1. VanEck’s stETH ETF filing triggers a 7% price jump
  2. Institutions have sold over $45 million in LDO, raising worries about a sell-off
  3. Launch of “Dual Governance” strengthens decentralization claims

In-Depth Look

1. VanEck’s Staked ETH ETF Proposal – Positive News

VanEck, a well-known investment firm, has registered a new ETF (Exchange-Traded Fund) focused on staked Ethereum (stETH) in Delaware. This would be the first U.S. ETF dedicated to staking Ethereum, potentially attracting large institutional investors.
Why it matters: Approval of this ETF would reinforce Lido’s leading position in liquid staking, where it currently holds about 30% of the market. This could bring in significant new investments and boost LDO’s value.
Read more

2. Paradigm’s $8.4 Million LDO Transfer – Negative Signal

Paradigm Capital, a major investor, recently moved 10 million LDO tokens (worth about $8.4 million) to cryptocurrency exchanges. This is part of a larger trend where institutions have sold more than $45 million in LDO since June.
Why it matters: Paradigm bought these tokens over the counter (OTC) at an average price of $0.76 but is now selling them near $1.26. If more selling follows, it could create downward pressure on LDO’s price and signal a local peak.
See details

3. Dual Governance Launch – Positive for Decentralization

Lido has activated a new “Dual Governance” system, allowing holders of stETH to veto proposals made by the DAO (Decentralized Autonomous Organization). This makes hostile takeovers much harder and improves the protocol’s decentralization.
Why it matters: This change is good for Lido’s long-term health and security. While the immediate price impact was modest (LDO rose about 2% after the announcement), it strengthens trust in the platform.
More info

Summary

The outlook for LDO is mixed. On one hand, the VanEck ETF filing and governance improvements suggest strong growth potential, with price targets above $2. On the other hand, significant selling by early investors like Paradigm could create short-term resistance around $1.50. Keep an eye on the stETH to ETH price ratio—if stETH consistently trades above ETH, it would indicate growing demand for staking and confirm Lido’s dominance in managing over $38 billion in assets.


What is the latest news about LDO?

Lido DAO is gaining attention thanks to excitement around a new ETF and a token buyback plan, but regulatory challenges still exist. Here’s a quick summary:

  1. VanEck Files for Lido Staked Ethereum ETF (October 2, 2025) – The first U.S. ETF focused on staked Ethereum, using Lido’s $38 billion staking platform.
  2. LDO Token Rises 7% After ETF News (October 3, 2025) – Price jumps to $1.30 with a big increase in trading activity, showing strong investor interest.
  3. Buyback Program Aims to Reduce LDO Supply (September 30, 2025) – Lido plans to use stETH and stablecoins to buy back tokens, with a test phase expected in Q4.

Deep Dive

1. VanEck Files for Lido Staked Ethereum ETF (October 2, 2025)

What happened:
VanEck submitted paperwork for the VanEck Lido Staked Ethereum ETF, a new investment product that would let people invest in Ethereum that’s been “staked” through Lido’s platform. Staking means locking up ETH to help secure the Ethereum network and earn rewards. This ETF would hold stETH tokens, which represent staked ETH, and offer investors about a 4% yearly return without needing to manage the technical side themselves. Lido currently handles about 30% of all staked ETH, worth $38 billion, making it a major player in this space.

Why it matters:
If approved, this ETF could bring billions of dollars into Lido’s ecosystem, increasing revenue and encouraging more people to use stETH. However, the U.S. Securities and Exchange Commission (SEC) has only approved the trust structure so far, not the full ETF. Other big firms like BlackRock might also enter this market soon. (CoinGape)

2. LDO Token Rises 7% After ETF News (October 3, 2025)

What happened:
Following the ETF filing, LDO’s price jumped 7% to $1.30. Trading activity increased significantly, with derivatives volume up 45% and spot trading volume rising 30%. This shows both everyday investors and institutions are optimistic. Analysts see resistance at $1.50, but if positive ETF sentiment continues, the price could reach $2 by the end of the year.

Why it matters:
The price increase reflects confidence in Lido’s role in Ethereum staking. However, the momentum is currently neutral, and if the ETF approval faces delays, some investors might sell off their tokens, causing a price drop. (Crypto Times)

3. Buyback Program Aims to Reduce LDO Supply (September 30, 2025)

What happened:
Lido DAO approved a plan to buy back LDO tokens using treasury assets like stETH and stablecoins. The goal is to reduce the number of tokens available on the market, which could help support the price. About 70% of new protocol income will go toward buybacks, with a $50 million limit to avoid overspending. A trial phase is expected by December.

Why it matters:
Buybacks can help tighten supply and potentially boost token value, but their success depends on Lido’s ability to grow revenue. Some critics worry that focusing on buybacks might distract from improving staking technology, especially as competitors like Rocket Pool gain popularity. (Crypto.News)

Conclusion

Lido DAO is making moves to attract institutional investors through the ETF and buyback program, but regulatory approval and competition remain significant challenges. The big question is whether the SEC will approve VanEck’s ETF and how Lido will maintain its market position against other staking services.


What is expected in the development of LDO?

I wasn’t able to find useful information to answer this question right now. The CoinMarketCap team is continuously updating my crypto knowledge, so if any important details come up, I should have them soon. In the meantime, please feel free to choose another question or coin for analysis.


What updates are there in the LDO code base?

Lido DAO’s recent software updates focus on making the platform more decentralized and secure, guided by community decisions.

  1. Triggerable Withdrawals (July 23, 2025) – Lets anyone initiate validator exits using Ethereum’s EIP-7002 standard, removing the need for centralized approval.
  2. CSM v2 Rollout (July 21, 2025) – Increases the staking limit for community validators and adds protections through governance rules.
  3. Dual Governance Activation (July 15, 2025) – Gives stETH holders the power to delay or block proposals, adding an extra layer of security.

Deep Dive

1. Triggerable Withdrawals (July 23, 2025)

What it is: This update allows any user to trigger the exit of validators through Lido’s withdrawal contract. Previously, only certain operators could do this, which created some centralization risks.

By adopting Ethereum’s EIP-7002, users can now bypass node operators to start validator exits. This helps reduce delays in the exit process and makes the system more resistant to censorship by spreading control more widely.

Why it matters: This is a positive step for LDO because it lowers centralization risks and aligns with Ethereum’s goal of decentralization. It also gives stakers more freedom and control. (Source)

2. CSM v2 Rollout (July 21, 2025)

What it is: The Community Staking Module (CSM) version 2 raises the maximum stake that community validators can hold to 10% of Lido’s total stake.

This update also introduces a system to identify stakers and adjusts parameters to balance growth with security. The goal is to encourage more diverse node operators and reduce dependence on large institutional validators.

Why it matters: This change is neutral for LDO. It opens the door for more participants but requires careful oversight to avoid risks from smaller, less experienced validators. (Source)

3. Dual Governance Activation (July 15, 2025)

What it is: Dual Governance gives stETH holders the ability to delay or block DAO proposals using time delays and “rage quit” options.

If at least 1% of stETH holders oppose a proposal, its execution is delayed between 5 and 45 days. If opposition reaches 10%, governance pauses until dissenting holders leave. This system has undergone multiple audits and testing to prevent attacks on governance.

Why it matters: This is a strong positive for LDO because it protects against hostile takeovers and increases confidence among institutional participants. (Source)

Conclusion

Lido DAO is strengthening decentralization by giving users more control over validator exits, expanding community staking, and adding safeguards to governance. These improvements support Ethereum’s vision of a trustless network but also add complexity. The key question is how Lido will maintain smooth operations while continuing to innovate as its platform evolves.