Why did the price of LDO fall?

Lido DAO (LDO) dropped 3.05% in the last 24 hours, underperforming the overall crypto market, which fell by 1.02%. This decline is linked to negative technical signals, uncertainty around governance decisions, and ongoing selling by large investors.

1. Technical Breakdown – Important moving averages were broken, confirming downward momentum.
2. Governance Uncertainty – A current DAO vote on budget and token vesting is causing caution among investors.
3. Institutional Selling – Large transfers of LDO to exchanges by big holders are increasing supply pressure.

Deep Dive

1. Technical Breakdown (Bearish Impact)

Overview: LDO is trading below its 30-day and 200-day simple moving averages (SMAs), at $0.887 and $0.999 respectively. This suggests strong downward momentum. The Relative Strength Index (RSI) is at 45.22, indicating weakening buying interest, and the MACD histogram is negative (-0.003), confirming selling pressure.

What this means: Traders who rely on technical analysis see these signals as confirmation that LDO is in a downtrend. There is little support until the $0.765 level, which is the 50% Fibonacci retracement point, meaning the price could fall further.

What to watch: If LDO falls and stays below $0.765, it could trigger automated selling by trading algorithms.

2. Governance Vote Sparks Caution (Mixed Impact)

Overview: Lido DAO members are voting until November 7 on a $250,000 budget proposal and changes to the LDO token vesting schedule. More details can be found here.

What this means: While governance votes usually increase community engagement, this particular vote focuses on managing the DAO’s treasury. This has raised concerns about potential dilution of token value or decisions that may not align with short-term price goals.

3. Institutional Selling Persists (Bearish Impact)

Overview: On-chain data shows that Paradigm Capital moved 10 million LDO tokens (worth about $8.4 million) to exchanges this week, continuing a pattern of large holders selling after LDO’s 133% price increase from October lows. See the transaction details here.

What this means: These large transfers add selling pressure, making it harder for the market to absorb the extra supply. Historically, such selling by big investors often leads to extended periods where the price moves sideways or declines.

Conclusion

LDO’s recent price drop is driven by technical weaknesses, uncertainty around governance decisions, and selling by large holders. Although the upcoming Chainlink CCIP integration on November 5 offers long-term benefits, traders are focused on short-term risks.

Key points to watch: Will LDO hold the $0.76 support level? How will the DAO vote outcome affect market sentiment? Keep an eye on exchange inflows and outflows for signs of whale activity.

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What could affect the price of LDO?

Lido DAO is navigating a complex mix of protocol updates, regulatory changes, and market forces.

1. Dual Governance Activation – stETH holders now have veto power, which changes how incentives are aligned.
2. Staking ETF Prospects – VanEck’s proposed stETH ETF could increase interest from big investors.
3. Token Supply Pressures – Unlocking 36% of the treasury and large investor sales could dilute value.

Deep Dive

1. Dual Governance & Protocol Upgrades (Mixed Impact)

Overview: In July 2025, Lido introduced a Dual Governance system. This allows stETH holders to delay or block proposals if 1-10% of staked ETH opposes them. This helps prevent any single group from controlling decisions but can make it harder to move quickly. Recent votes, like approving a $250,000 budget, show active participation from the community.

What this means: While this system makes Lido more decentralized and fair, it could slow down important upgrades, such as expanding node operators, if stETH holders disagree. When this governance change happened, LDO’s price dropped 13% in the short term, but it’s expected to make the protocol stronger over time.

2. Staking ETFs & Regulatory Tailwinds (Bullish Impact)

Overview: In October 2025, VanEck filed for a stETH ETF, similar to successful Bitcoin ETFs. The SEC’s August 2025 statement that stETH is not a security reduces regulatory risks for big investors.

What this means: If approved, this ETF could bring billions of dollars into Lido’s staking system, increasing demand for stETH and raising LDO’s value through fees. However, any delays or rejection could slow down this momentum, as seen with Bitcoin ETF approvals.

3. Tokenomics & Whale Activity (Bearish Risk)

Overview: LDO’s circulating supply is about 890 million tokens, but there are concerns:

• Treasury unlocks: 36% (around 324 million LDO) is still locked but will be released over time.
• Whale sales: Large investors like Paradigm Capital sold 10 million LDO ($8.4 million) in June 2025, continuing a trend of early investors cashing out.

What this means: These sales and upcoming token releases could put downward pressure on LDO’s price. For example, after a strong 133% rebound from a low of $0.32 in October, the price stalled around $0.80 due to excess supply. Keeping an eye on exchange inflows and token release schedules is important.

Conclusion

LDO’s future depends on balancing Ethereum’s growing staking ecosystem with risks from token dilution. The new Dual Governance system and potential ETF approval offer promising growth opportunities, but supply pressures and broader market trends (like Bitcoin’s 59% dominance) remain challenges. Will Lido’s treasury manage token unlocks effectively while encouraging stETH adoption? Watch for ETF updates and DAO proposals in Q4 to understand how institutional interest is evolving.

What are people saying about LDO?

Lido DAO (LDO) is seeing mixed signals from its community, swinging between hopeful price gains and concerns over large sell-offs. Here’s the latest:

1. Analysts predict a price jump to $2.55 as the project hits profit milestones
2. Institutions have sold over $21 million worth of LDO recently, raising fears of a price drop
3. New Dual Governance system launched gives stakers more control and protects against hostile takeovers

In-Depth Look

1. @johnmorganFL: $2.55 Price Target — Bullish Outlook

"Lido DAO became profitable in August for the first time since 2021. Analyst Ali Martinez expects the price to break out to $2.55 if it overcomes resistance."
– John Morgan (35K followers · 551K+ posts · Aug 12, 2025)
View original post
What this means: Turning a profit changes how people view LDO—from a risky bet to a more stable investment—especially since it plays a big role in Ethereum staking, which holds $38 billion in total value locked (TVL).

2. @WuBlockchain: $21M LDO Sell-Off — Bearish Signal

"A wallet linked to Lido moved 21.31 million LDO tokens (worth $21 million) to exchanges over six days, coinciding with a 24% price drop to $0.88."
– Wu Blockchain (545K followers · 29K posts · May 19, 2025)
View original post
What this means: Large amounts of LDO being sent to exchanges can flood the market, pushing prices down. This is supported by technical indicators like MACD and RSI, which are showing weakness.

3. @LidoFinance: Dual Governance Launch — Neutral Impact

"Stakers now have the power to veto proposals or initiate a 'rage quit'—meaning hostile takeovers require opposition from at least 10% of the stETH supply to be blocked."
– Lido (Official account · Jul 15, 2025)
View original post
What this means: This update reduces the risk of any one group taking control of governance but adds some complexity. LDO holders keep control over fees, while stETH holders gain veto rights.

Summary

The outlook for LDO is mixed. Some traders are optimistic about prices rising above $2 due to growth in Ethereum staking. However, large holders (whales) are selling, showing a lack of confidence. The new governance system makes the protocol stronger but hasn’t stopped the price from falling 43% so far this year. Keep an eye on exchange activity this week—if another $10 million or more is deposited, the price could test the June low of $0.76. On the other hand, steady buying above $0.80 might indicate the price has bottomed out.

What is the latest news about LDO?

Lido DAO is making moves with new partnerships and governance decisions as its token, LDO, bounces back from October’s lows. Here’s a quick summary of the latest:

1. Chainlink CCIP Integration (Nov 5, 2025) – Lido is using Chainlink’s technology to make transferring wrapped staked ETH (wstETH) across different blockchains safer and more efficient.
2. $250K Budget Vote Approved (Nov 7, 2025) – The community approved funding and changes to how contributors receive their LDO tokens, despite recent market challenges.
3. LDO Price Jumps 133% from October Low (Nov 6, 2025) – LDO’s price recovered to $0.76, even though the overall crypto market is still shaky.

In-Depth Look

1. Chainlink CCIP Integration (Nov 5, 2025)

What happened:
Lido DAO decided to switch from its own bridges to Chainlink’s Cross-Chain Interoperability Protocol (CCIP) for moving wstETH tokens across more than 16 blockchains, including popular ones like Arbitrum and Base. This upgrade is designed to improve security and add new features for developers building decentralized finance (DeFi) apps.

Why it matters:
This is a positive step for LDO because Chainlink’s CCIP is a proven system that secures over $100 billion in DeFi assets, reducing the risk of hacks related to token bridges. This could help more people use wstETH safely across different blockchains. On the flip side, moving to CCIP adds some complexity and means Lido depends more on Chainlink’s network to operate smoothly. (CoinJournal)

2. $250K Budget Vote Approved (Nov 7, 2025)

What happened:
Lido DAO’s community voted to approve a $250,000 budget for ongoing operations and to adjust the schedule for when contributors receive their LDO tokens. This passed even though LDO’s price dropped about 30% over the past month.

Why it matters:
This shows the community is still backing Lido’s core development despite a tough market, where LDO has fallen 43% since August. It’s important to watch how the treasury balance holds up (currently around $714 million market cap) and how the token vesting schedules affect future supply. (Coindesk)

3. LDO Price Jumps 133% from October Low (Nov 6, 2025)

What happened:
LDO’s price climbed to $0.76, a 133% increase from its low of $0.3278 on October 11, 2025. However, it’s still down nearly 10% over the past week. This price rebound followed the Chainlink CCIP news but hasn’t matched the growth in Ethereum staking, with Lido’s total value locked (TVL) steady at $38 billion.

Why it matters:
Traders see a chance for LDO to test $1.00 if the DeFi market sentiment improves. But low trading activity and a weak altcoin market (down 49% since October) suggest LDO’s upside is limited unless Ethereum’s price leads the way. (CoinJournal)

Conclusion

Lido DAO is focusing on improving cross-chain functionality and governance, but LDO’s price recovery is still fragile amid broader market challenges and Bitcoin’s dominance. The big question is whether the new Chainlink CCIP integration for wstETH can help offset risks from regulations and liquidity issues that affect liquid staking tokens.

What is expected in the development of LDO?

Lido DAO’s roadmap is focused on improving governance and growing its ecosystem.

1. Bridge Partnerships Vote (Oct 15–22, 2025) – Deciding on new partnerships to connect with other blockchains.
2. Validator Exits SNOP Vote (Oct 15–22, 2025) – Updating rules for node operators leaving the network.
3. Dual Governance Activation (July 2025) – Giving stETH holders more power to influence decisions.

Deep Dive

1. Bridge Partnerships Vote (Oct 15–22, 2025)

Overview:
Lido DAO is voting on whether the Lido Ecosystem Foundation should lead partnerships with major blockchain bridges (TradingView). These partnerships would help stETH, Lido’s token representing staked Ethereum, become more accessible on other blockchains like Polygon and Solana. This fits with Lido’s goal to support staking across multiple networks.

What this means:
This is positive for LDO because expanding to other blockchains could increase stETH use and generate more revenue. However, delays or weak market interest could limit these benefits.

2. Validator Exits SNOP Vote (Oct 15–22, 2025)

Overview:
This proposal updates the process for node operators (validators) who want to leave the network, aiming to improve security and keep the network decentralized (TradingView). It addresses risks like penalties for improper exits and makes transitions smoother.

What this means:
This is somewhat positive for LDO. Better management of validators could attract more operators, but if the new rules are too complex, it might slow network growth temporarily.

3. Dual Governance Activation (July 2025)

Overview:
Starting in July 2025, Dual Governance lets stETH holders delay or block proposals approved by LDO token holders through a timed delay system (Lido). If 1% of stETH holders oppose a proposal, it triggers a delay of 5 to 45 days. If 10% oppose, they can “rage quit,” effectively stopping the proposal.

What this means:
This is a positive long-term change because it reduces the risk of governance being controlled by a small group and aligns the interests of stETH holders and LDO holders. However, it could slow down decision-making in the short term due to added complexity.

Conclusion

Lido DAO’s roadmap aims to strengthen decentralization through Dual Governance and grow its ecosystem with new bridge partnerships. While these votes are designed to improve governance and expand cross-chain use, their success depends on smooth implementation and community support.

How will Lido balance fast growth with keeping Ethereum’s core values of decentralization as it scales?

What updates are there in the LDO code base?

Lido DAO’s software recently received important updates that improve security, decentralization, and give users more control.

1. CSM v2 Mainnet Launch (Oct 2, 2025) – Expanded permissionless staking with special benefits for independent operators.
2. Triggerable Withdrawals (Jul 23, 2025) – Anyone can now initiate validator exits through Ethereum’s Execution Layer.
3. Validator Ejector 1.9.0 (Sep 2025) – Required upgrade for node operators to support new exit features.

Deep Dive

1. CSM v2 Mainnet Launch (Oct 2, 2025)

Overview:
The Community Staking Module (CSM) version 2 launched on Ethereum’s main network. It raised the maximum stake share to 5% and introduced different rules for various types of node operators.

Details:
Independent operators can now apply to become “Identified Community Stakers.” This status lowers their bond requirements, gives them priority access, and increases their rewards. The goal is to diversify Lido’s validator network and reduce dependence on a few large players.

What this means:
This update is positive for Lido DAO (LDO) because it supports Ethereum’s decentralization and encourages more independent operators to join. This could make the network stronger and increase demand for staking. (Source)

2. Triggerable Withdrawals (Jul 23, 2025)

Overview:
A governance-approved update now allows anyone to trigger validator exits, not just node operators. This reduces the need to trust specific parties.

Details:
Based on Ethereum Improvement Proposal 7002 (EIP-7002), this feature uses the Validator Exit Bus (VEB) to verify exit requests on the blockchain. It includes safety checks like confirming validator ownership and works smoothly with Lido’s staking system.

What this means:
This change is neutral for LDO. It gives users more control but adds some complexity. Still, it fits with Ethereum’s long-term goal of permissionless staking. (Source)

3. Validator Ejector 1.9.0 (Sep 2025)

Overview:
Node operators must upgrade to version 1.9.0 to fully support Triggerable Withdrawals and improve exit handling.

Details:
This update introduces Easy Track factories that securely process exit requests by checking them against protocol rules before execution.

What this means:
This is good news for LDO because it reduces operational hurdles, making validator exits smoother and improving overall network reliability. (Source)

Conclusion

Lido DAO’s recent updates focus on decentralization, empowering users, and improving operations. The launch of CSM v2 and Triggerable Withdrawals shows a clear move toward Ethereum’s vision of trustless, permissionless participation. It will be interesting to see how these changes affect Lido’s leadership in liquid staking as other projects adopt similar approaches.