Why did the price of LDO go up?
Lido DAO (LDO) increased by 3.86% in the last 24 hours, outperforming the overall mixed crypto market, which rose 1.27%. This growth was driven by VanEck’s new staked Ethereum ETF filing and ongoing governance votes.
- VanEck’s ETF Filing – The first ETF proposal based on Lido-staked Ethereum could encourage more institutional investors.
- Governance Votes – Two active proposals focus on improving validator rules and expanding partnerships.
- Technical Signals – Indicators suggest a possible short-term price recovery.
Deep Dive
1. VanEck’s Staked ETH ETF Filing (Positive Outlook)
Overview:
On October 16, VanEck submitted a proposal for an ETF that tracks the price of stETH, which is Ethereum staked through Lido’s platform. This ETF would provide a regulated way for investors to earn rewards from Ethereum staking, leveraging Lido’s strong position, which controls nearly 60% of the ETH staking market.
What this means:
This filing shows that Lido’s platform is gaining trust among institutional investors, which could increase demand for stETH and enhance the importance of LDO in governance decisions. However, after the announcement, stETH’s price dropped by 5.73% as some investors took profits, showing mixed feelings in the short term.
What to watch:
Keep an eye on the U.S. Securities and Exchange Commission’s (SEC) response during their 75-day review period and any similar ETF proposals from competitors.
2. Governance Votes (Mixed Impact)
Overview:
Two proposals are open for voting until October 22:
- Validator Exits SNOP Vote: Aims to simplify the rules for validators leaving the network, improving security.
- Bridge Partnerships Vote: Seeks approval for Lido to work with cross-chain bridges, which connect different blockchain networks.
What this means:
If approved, these changes could make Lido more decentralized and easier to use, attracting more people to stake their Ethereum. However, the impact on price may be limited in the short term due to voter participation levels and potential technical challenges.
3. Technical Rebound Signals (Neutral)
Overview:
LDO’s Relative Strength Index (RSI) is at 38.7, moving up from an oversold level, and the MACD indicator shows that downward momentum is weakening. The price faces resistance at the 7-day Simple Moving Average ($0.92) and the Fibonacci 23.6% retracement level ($1.11).
What this means:
The recent price bounce fits with bullish signals but lacks strong volume support. If LDO can break above $0.92 and hold, it may continue to recover in the short term. If not, it could test support around $0.85 again.
Conclusion
LDO’s recent gains reflect positive sentiment around VanEck’s ETF filing and governance improvements. However, technical indicators and the drop in stETH’s price suggest some caution is warranted. Key point to watch: Can LDO maintain support near $0.90, especially if overall crypto market sentiment remains fearful (Crypto Market Fear & Greed Index at 27)?
What could affect the price of LDO?
Lido DAO’s price is currently caught between growing interest from big investors and concerns about token supply risks.
- ETF Opportunity – VanEck’s application for a stETH ETF could boost demand for Lido’s staking services (positive).
- Governance Decisions – Upcoming votes on partnerships and upgrades could either help or hurt Lido’s value (mixed).
- Token Unlocks – Early investors control 64% of LDO tokens, which may lead to ongoing selling pressure (negative).
In-Depth Analysis
1. VanEck’s stETH ETF Application (Positive Outlook)
What’s happening: On October 16, 2025, VanEck filed for the first U.S. ETF based on Lido’s staked Ethereum (stETH). If approved, this ETF would allow investors to earn returns from stETH through a regulated investment product. Lido currently leads Ethereum staking with nearly 60% market share, managing over $33 billion in staked ETH.
Why it matters: Approval would confirm Lido’s importance in the institutional staking space, likely increasing demand for its services and the LDO token. However, if the SEC delays or rejects the ETF, this momentum could slow down.
2. Governance Votes & Protocol Updates (Mixed Outlook)
What’s happening: Two key votes are set to conclude on October 22:
- Validator Exit Vote: Aims to make it easier for validators to leave, improving network security.
- Bridge Partnerships Vote: Seeks to increase stETH’s liquidity across different blockchains.
Why it matters: If these votes pass, Lido could strengthen its position against competitors like Rocket Pool. But if the votes fail or if new partnerships face issues (like security breaches), it could hurt confidence. For example, a governance upgrade in July improved decentralization but didn’t significantly affect price.
3. Token Supply & Early Investor Selling (Negative Outlook)
What’s happening: Early investors, developers, and validators hold 64% of all LDO tokens (about 640 million). Paradigm Capital, a major holder, sold 50 million LDO tokens in 2024 at $1.31 each and moved another 10 million tokens to exchanges in June 2025.
Why it matters: Because a large portion of tokens is concentrated in a few hands with scheduled unlocks, there is ongoing selling pressure. This has contributed to LDO’s price dropping 32% over the past 60 days, underperforming Ethereum’s 10% decline over 30 days.
Conclusion
LDO’s short-term price direction depends heavily on the outcome of the ETF approval and governance votes. Long-term risks include token dilution and regulatory challenges. Investors should watch the SEC’s 75-day review period for VanEck’s ETF and monitor large token movements to exchanges.
Will Lido’s growing institutional support outweigh the risks from token supply and regulation?
What are people saying about LDO?
The community around Lido DAO (LDO) is experiencing mixed feelings, swinging between optimism and caution. Here’s the latest:
- Analysts are targeting $2.55 based on positive chart trends
- Institutions have sold over $45 million worth of LDO, raising concerns about potential price drops
- The launch of Dual Governance is seen as a positive step toward more decentralized control
In-Depth Look
1. Analyst @johnmorganFL Sees $2.55 Price Target
“Analyst Hints LDO Price Rally To $2.55, As Lido DAO Turns Profitable”
– @johnmorganFL (32k followers · 1.2M impressions · August 12, 2025)
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What this means: Technical indicators are showing strength, and Lido DAO recently reported its first profitable month. This has sparked optimism, though reaching $2.55 would mean the price more than doubles from the current $0.91.
2. @WuBlockchain Reports Paradigm’s $8.4M LDO Sell-Off
“Paradigm Capital transferred 10M LDO ($8.4M) to exchanges”
– @WuBlockchain (290k followers · 4.8M impressions · June 10, 2025)
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What this means: Paradigm Capital, a major investor, has been selling off LDO tokens since 2021, averaging $1.16 per token. In the past 30 days alone, institutional investors have sold $45.6 million worth of LDO, which could put downward pressure on the price.
3. @LidoFinance Announces Dual Governance Launch
“Dual Governance approved – stETH holders gain veto power”
– @LidoFinance (410k followers · 6.3M impressions · June 30, 2025)
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What this means: The new governance system gives stETH holders more control, allowing them to block harmful proposals if they hold at least 1% of the stake, or trigger mass exits with 10%. This reduces the risk of attacks on the governance process and strengthens the community’s influence.
Summary
Opinions on LDO are divided. While new governance features and profitability signal positive momentum, large-scale selling by big investors creates uncertainty. Keep an eye on the $0.86 price level—if it falls below this, selling could speed up toward yearly lows. However, holding above $0.90 might confirm a positive turnaround. Upcoming governance votes from October 15-22 on partnerships and validator exits will be important tests for the new system’s strength.
What is the latest news about LDO?
Lido DAO is making moves to attract institutional investors and improve its governance as excitement about a potential stETH ETF meets a challenging market. Here’s what’s new:
- VanEck Files for Lido Staked Ethereum ETF (October 17, 2025) – The first regulated ETF proposal for stETH sparks mixed reactions in the market.
- Vote on Validator Exit Rules (October 15–22, 2025) – A governance proposal aims to make it easier for node operators to exit, improving protocol security.
- Vote on Bridge Partnerships (October 15–22, 2025) – The DAO is considering expanding stETH’s reach across different blockchain networks through new partnerships.
Deep Dive
1. VanEck Files for Lido Staked Ethereum ETF (October 17, 2025)
What happened:
VanEck submitted paperwork to the SEC to launch an ETF that tracks stETH, using MarketVector’s benchmark. This ETF would allow investors to earn rewards from Ethereum staking without needing to run their own validators. Lido currently leads Ethereum staking with nearly 60% market share, managing $33.37 billion in staked assets. The SEC’s faster review process (75 days instead of 240) could speed up the ETF’s approval.
Why it matters:
This is a positive sign for LDO because it shows growing institutional interest in Lido’s staking services. However, stETH’s price dropped about 5.7% after the announcement, reflecting uncertainty about how quickly the ETF will be approved and concerns about potential dilution. (Yahoo Finance)
2. Vote on Validator Exit Rules (October 15–22, 2025)
What happened:
Lido DAO members are voting on new rules to make it easier for node operators (validators) to leave the network. The proposal includes flexible time delays and allows anyone to initiate exits through Lido’s withdrawal contract (EIP-7002).
Why it matters:
This change could encourage more node operators to participate by reducing risks related to centralization. It’s generally seen as a positive or neutral step for LDO. However, if the vote fails, it might raise questions about how well the DAO can manage important decisions. (TradingView)
3. Vote on Bridge Partnerships (October 15–22, 2025)
What happened:
Another vote is underway to give the Lido Ecosystem Foundation the authority to form partnerships with blockchain bridges. This would help stETH work across Layer-2 networks, increasing its usability.
Why it matters:
If approved, these partnerships could help stETH gain wider adoption and generate more fees. However, skepticism remains since LDO’s price dropped 11% over the past week amid a broader decline in alternative cryptocurrencies. (TradingView)
Conclusion
Lido DAO is balancing growing institutional interest, highlighted by the ETF filing, with important governance updates. Still, the overall market environment is tough, and stETH’s price remains sensitive. The big question is whether VanEck’s ETF proposal can help stabilize LDO’s recent 27% drop over the last 30 days or if the downward trend will continue.
What is expected in the development of LDO?
Lido DAO’s roadmap is centered on improving governance and building strategic partnerships.
- Bridge Partnerships Vote (Oct 15–22, 2025) – Aiming to expand staking across different blockchain networks.
- Validator Exits SNOP Vote (Oct 15–22, 2025) – Strengthening rules for node operators to enhance network security.
- VanEck’s stETH ETF Filing (Oct 16, 2025) – A move that could bring more institutional investors into Lido’s ecosystem.
Deep Dive
1. Bridge Partnerships Vote (Oct 15–22, 2025)
Overview
Lido DAO members will vote on whether to allow the Lido Ecosystem Foundation to form partnerships with major blockchain bridges (TradingView). If approved, this would make it easier to move stETH tokens across networks like Arbitrum and Polygon, improving how easily users can access and use their staked Ethereum.
What this means
This is a positive development for LDO holders because more bridge options could attract new users and increase fees earned by the protocol. However, there is some risk if these partnerships don’t come through or face technical challenges.
2. Validator Exits SNOP Vote (Oct 15–22, 2025)
Overview
This proposal updates the rules for node operators (validators) who want to leave the network, aiming to prevent bad actors from exiting in ways that harm the system and to improve decentralization (TradingView). Key changes include stricter penalties for misbehavior and faster processes to replace exiting validators.
What this means
This update is generally positive because stronger security measures can increase confidence among stakers. However, tougher rules might discourage smaller validators from participating. The success of this change depends on finding the right balance between security and flexibility.
3. VanEck’s stETH ETF Filing (Oct 16, 2025)
Overview
VanEck has filed to launch the first U.S. exchange-traded fund (ETF) based on staked Ethereum (stETH) through Lido, tracking staking rewards using MarketVector’s index (Yahoo Finance).
What this means
If approved, this ETF could bring significant institutional investment into Lido’s ecosystem, which is very positive for LDO. However, regulatory approval is uncertain and delays or denials could negatively impact market sentiment.
Conclusion
Lido DAO is focusing on expanding cross-chain capabilities, improving validator security, and attracting institutional investors. The VanEck ETF filing is a standout development that could reshape the ecosystem if it gains approval. It will be interesting to see how LDO’s governance evolves as traditional finance potentially becomes a major player in stETH holdings.
What updates are there in the LDO code base?
Lido DAO’s recent software updates focus on increasing decentralization and giving users more control through improved governance and staking features.
- CSM v2 Launch (July 23, 2025) – Raises staking limits and introduces a community-driven validator system.
- Triggerable Withdrawals (July 23, 2025) – Allows users to exit validators without needing permission from node operators.
- Dual Governance SDK Update (August 8, 2025) – Enhances voting power and veto options for stETH holders in governance contracts.
In-Depth Look
1. CSM v2 Launch (July 23, 2025)
What it is: The Community Staking Module version 2 increases the maximum stake for community validators to 10% of all staked ETH and adds a way to identify stakers.
This update helps smaller validators join the network more fairly, reducing dependence on a few large node operators. It also includes protections against penalties (slashing) and adjusts rewards to keep risks balanced.
Why it matters: This is a positive step for Lido DAO (LDO) because it promotes decentralization, which can attract more users who want a trustless and fair staking experience. More validator diversity also makes the network stronger and more secure.
(Source)
2. Triggerable Withdrawals (July 23, 2025)
What it is: By adopting EIP-7002, this feature lets any user initiate a validator exit through Lido’s withdrawal contract without needing approval from node operators.
This removes a central point of control, giving users more freedom to withdraw their stakes quickly, especially useful during emergencies or network issues.
Why it matters: This change is neutral for LDO. It improves user control and resistance to censorship but adds complexity that needs careful oversight to avoid misuse.
(Source)
3. Dual Governance SDK Update (August 8, 2025)
What it is: The SDK version 4.5.1 fixes technical issues in the dual-governance smart contracts, such as naming conflicts and veto signaling improvements.
This update builds on the June activation of dual governance, which allows stETH holders to delay or block proposals by locking their tokens. These fixes help ensure smooth interaction with decentralized apps and wallets.
Why it matters: This is good news for LDO because it strengthens the governance power of stakers, reducing risks of hostile takeovers and aligning the interests of LDO holders and ETH stakers.
(Source)
Conclusion
Lido DAO’s latest updates focus on decentralization (CSM v2), empowering users (Triggerable Withdrawals), and securing governance (SDK improvements). These changes aim to keep Lido competitive in liquid staking while staying true to Ethereum’s core principles. It will be interesting to see how these upgrades affect Lido’s position as other platforms adopt similar features.