Why did the price of LDO fall?

Lido DAO (LDO) dropped 6.52% in the last 24 hours, performing worse than the overall crypto market, which fell 2.74%. The main reasons include:

1. Mixed Feelings About Buyback Plan – A new automated buyback program capped at $10 million per year didn’t meet traders’ expectations for a bigger impact.
2. Technical Resistance – The price hit a key resistance level at the 30-day Simple Moving Average (SMA) of $0.878 and was pushed back, indicating bearish momentum.
3. Market Caution – Increased fear in the market (Fear & Greed Index at 31) and rising Bitcoin dominance (59.38%) put pressure on altcoins like LDO.

Deep Dive

1. Concerns Over Buyback Proposal (Bearish Impact)

Overview:
Lido DAO suggested an automated buyback system for LDO tokens funded by protocol revenue. However, the plan includes strict limits—a maximum of $10 million per year—and only activates if Ethereum (ETH) stays above $3,000 and the protocol earns at least $40 million annually.

What this means:
While buybacks can reduce the number of tokens available and potentially support the price over time, this program’s small scale (estimated $4 million per year) disappointed investors. For comparison, Uniswap recently announced a much larger $450 million buyback plan, raising expectations. Also, the buyback pauses during bear markets, limiting short-term price support.

What to watch:
The community vote on this proposal, expected by early 2026, and whether ETH remains stable above $3,000.

2. Price Rejection at Key Technical Level (Bearish Impact)

Overview:
LDO’s price was pushed down after hitting resistance at the 30-day Simple Moving Average ($0.878), an important technical barrier.

What this means:

• The Relative Strength Index (RSI) at 49.84 suggests neutral momentum, but the MACD indicator (+0.0105) points to weakening bullish signals.
• Immediate support is around $0.80 (7-day SMA). If selling continues, the price could drop further toward $0.76 (200-day SMA).

What to watch:
A daily closing price above $0.878 would be needed to break this bearish trend.

3. Market-Wide Risk Aversion (Mixed Impact)

Overview:
The crypto market experienced $178 billion in derivatives liquidations due to concerns like a possible U.S. government shutdown and outflows from Ethereum ETFs (losing $1.53 billion in assets monthly).

What this means:
LDO’s trading volume jumped 13.5% to $121 million, indicating some panic selling. Still, LDO gained 11% over the past week, outperforming Bitcoin (-2.18%) and Ethereum (-7.79%), showing continued interest in decentralized finance (DeFi) projects.

Conclusion

LDO’s recent price drop is mainly due to disappointment over the limited buyback plan and technical resistance, combined with broader market caution. However, its better performance compared to ETH and BTC suggests there is still demand for liquid staking solutions. Key point to watch: Can LDO maintain support at $0.80 ahead of the November 11 Tokenholder Update Call, which will discuss the 2026 roadmap?

What could affect the price of LDO?

LDO’s future depends on new governance changes, how well buybacks are carried out, and the demand for Ethereum staking.

1. Automated Buyback Proposal – A $10 million per year limit could reduce LDO supply if Ethereum (ETH) stays above $3,000.
2. Dual Governance Risks – stETH holders can block proposals, which adds security but may slow down decisions.
3. ETH Price Dependency – Buybacks only happen if ETH performs well, linking LDO’s revenue to ETH’s price.

Deep Dive

1. Buyback Mechanism (Positive Impact)

Overview:
Lido DAO plans an automated buyback program that would use up to half of its revenue above $40 million per year to buy back LDO tokens. These tokens would be paired with wrapped staked ETH (wstETH) in a Uniswap v2 liquidity pool. This program only activates if ETH is above $3,000 and is capped at $10 million per year to avoid disrupting the market (Steakhouse Financial).

What this means:
When ETH prices are high, this buyback could reduce the number of LDO tokens available, helping to offset inflation caused by tokens being unlocked over time (64% of LDO supply is still locked until 2025). However, the $10 million cap means the impact is limited—about 1.4% of LDO’s current market value each year.

2. Dual Governance Dynamics (Mixed Impact)

Overview:
Starting June 2025, Lido introduced Dual Governance, allowing stETH holders to delay or block proposals by locking up their tokens. If 10% of stETH holders oppose a proposal, a “rage quit” can freeze governance until those dissenting members leave (Lido).

What this means:
This system helps protect against hostile takeovers or bad decisions but can slow down the decision-making process. After this change, LDO’s price dropped 13% in July 2025, showing that investors were cautious about slower governance.

3. Ethereum Staking Demand (Key Factor)

Overview:
Lido earns revenue equal to 0.81% of the total ETH staked through its platform. This revenue depends on both the price of ETH and how many people stake their ETH. Recently, ETH’s price dropped 7.5% over 30 days, and the $3,000 price point is critical for triggering buybacks.

What this means:
If ETH price recovers above $3,000, buybacks could start again, increasing demand for LDO and its usefulness. But if ETH stays weak, buybacks may stop, and LDO could face challenges from the overall market downturn.

Conclusion

LDO’s medium-term success depends largely on ETH’s price staying strong enough to activate buybacks. Long-term, Lido needs to balance efficient governance with protecting stakers’ interests. Keep an eye on the community’s reaction to the November 11 proposal and whether ETH can hold above $3,000 after the U.S. government shutdown situation is resolved. Will Lido’s unique token model overcome the pressure from locked tokens?

What are people saying about LDO?

Lido DAO (LDO) is experiencing ups and downs driven by both hopeful developments and large investor concerns. Here’s the latest:

1. Buyback proposal – A new plan to automatically buy back LDO tokens is generating positive sentiment.
2. Big investor activity – Paradigm Capital moved $8.4 million worth of LDO, raising worries about selling pressure.
3. Price action focus – Traders are watching the $0.79 to $0.83 price range closely as a critical point for LDO’s next move.

Deep Dive

1. @LidoFinance: Automated buybacks proposed – positive outlook

A new proposal (ID 691337f5a5085d49d27267ea) suggests using staking revenue to buy back LDO tokens automatically when Ethereum’s price is above $3,000 and annual revenue exceeds $40 million. The buybacks would be capped at $10 million per year.
– @LidoFinance (229K followers · 2.6K impressions · 2025-11-11 13:14 UTC)
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What this means: If approved, this plan could help reduce the number of LDO tokens available during strong market periods, supporting the price. It also avoids forced selling during downturns, which is a positive structural change.

2. @WuBlockchain: Paradigm Capital’s large LDO transfer – negative signal

Paradigm Capital recently moved 10 million LDO tokens (worth $8.4 million) to exchanges as part of a gradual exit from a position they bought in 2021 at $0.76 per token. They previously sold 50 million LDO at $1.31, making a $27.5 million profit.
– @WuBlockchain (545K followers · 4.2K impressions · 2025-06-10 01:49 UTC)
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What this means: Large institutional selloffs like this can create resistance levels, making it harder for the price to rise. The $0.76 price point is an important support level to watch.

3. @johnmorganFL: Technical analysis – mixed signals

LDO recently moved back above its 50-period moving average on the 1-hour chart at $0.81. Bulls need to keep the price above $0.79, which was the low point in 2025. The next resistance is around $0.86, linked to a key Fibonacci retracement level from July to October’s price drop.
– @johnmorganFL (35K followers · 498K impressions · 2025-08-12 14:10 UTC)
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What this means: Short-term traders see potential for gains, but the weakening momentum indicator (RSI at 47.73) suggests the upward move may lose strength soon.

Conclusion

The outlook for Lido DAO (LDO) is mixed. Positive governance proposals are encouraging, but large investor selloffs and weakening technical indicators add caution. Keep an eye on the buyback proposal vote ending November 28 and whether Ethereum can stay above $3,000, which would activate the buyback plan. For traders, the $0.76 to $0.83 price range is key to watch for LDO’s next direction.

What is the latest news about LDO?

Lido DAO is making some thoughtful changes to its token strategy that have sparked cautious optimism. Here’s a quick summary of the latest updates:

1. Automated Buyback Proposal (November 11, 2025) – A plan to buy back up to $10 million worth of LDO tokens each year, triggered only when Ethereum (ETH) prices and Lido’s revenue hit certain levels.
2. stRATEGY Yield Product Launch (November 11, 2025) – A new product that automatically manages ETH staking across different platforms to help users earn better returns.

Deep Dive

1. Automated Buyback Proposal (November 11, 2025)

What’s happening?
Lido DAO’s financial team, called Steakhouse Financial, proposed an automated system to buy back LDO tokens. This system is inspired by a similar approach used by MakerDAO. The buybacks would only happen if two conditions are met: ETH must be trading above $3,000, and Lido’s yearly revenue must exceed $40 million. When these conditions are met, up to half of the extra revenue (capped at $10 million per year) would be used to buy back LDO tokens. These tokens would then be paired with wstETH (wrapped staked ETH) in liquidity pools on Uniswap v2-style exchanges to help improve market liquidity.

Why does this matter?
This move is cautiously positive for LDO holders because it reduces the number of tokens available (which can increase value) while also encouraging liquidity, making it easier to trade LDO. However, the success of this plan depends heavily on ETH prices staying strong and Lido continuing to generate solid revenue. The $10 million cap is relatively modest compared to other big buyback programs in the crypto space, showing a careful approach to avoid market disruption. (Yahoo Finance)

2. stRATEGY Yield Product Launch (November 11, 2025)

What’s happening?
Lido introduced stRATEGY, a new product built on the Mellow Protocol. This product automatically spreads users’ ETH, WETH, and wstETH across popular decentralized finance (DeFi) platforms like Aave, Ethena, and Uniswap. Users receive strETH tokens that earn yield and accumulate Mellow points, which can be redeemed for wstETH at any time.

Why does this matter?
This is a helpful development that makes it easier for Lido users to earn returns on their staked ETH without having to manage multiple platforms themselves. It could encourage more people to stake ETH through Lido. However, its success depends on continued strong returns from DeFi platforms and competition from similar products like EigenLayer. (CoinMarketCap)

Conclusion

Lido DAO is trying to balance rewarding token holders through buybacks with growing its ecosystem through new products like stRATEGY. Both initiatives rely on ETH prices and revenue reaching certain levels before they kick in. The upcoming governance votes will reveal whether the community favors short-term token value or long-term product growth.

What is expected in the development of LDO?

Lido DAO is focusing on improving governance, building strategic partnerships, and optimizing its token economics.

1. Automated Buyback Proposal (Q1 2026) – A plan to buy back LDO tokens automatically when Ethereum (ETH) prices and Lido’s revenue hit certain levels.
2. Bridge Partnerships Vote Outcome (Oct 15–22, 2025) – Approval to partner with major cross-chain bridges to expand stETH usage.
3. Validator Exits SNOP Implementation (2026) – New rules to improve security around how node operators exit the network.

Deep Dive

1. Automated Buyback Proposal (Q1 2026)

Overview:
The Steakhouse Finance Workstream proposed a system where Lido DAO would use some of its revenue to buy back LDO tokens automatically. This would only happen if ETH trades above $3,000 and the DAO’s yearly revenue is over $40 million, with a maximum buyback of $10 million per year. The bought-back LDO tokens would be paired with wrapped stETH (wstETH) in a Uniswap v2 liquidity pool to improve market liquidity.

What this means:
This is a positive sign for LDO holders because it could reduce the total supply of tokens (deflationary effect) and tie the token’s value more closely to Lido’s success. However, since the buybacks depend on ETH price and revenue targets, there is some risk if the market weakens.

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

Overview:
Lido DAO recently voted to allow the Lido Ecosystem Foundation to form official partnerships with cross-chain bridges such as LayerZero and Wormhole. These bridges help move stETH tokens across different blockchain networks, making it easier for users to access stETH in various decentralized finance (DeFi) platforms.

What this means:
This is somewhat positive because wider use of stETH could increase transaction fees and adoption. However, the actual impact on LDO’s price depends on how successful these partnerships are. Keep an eye out for announcements and data on stETH usage across chains.

3. Validator Exits SNOP Implementation (2026)

Overview:
Starting in 2026, Lido will update its validator exit process with new security measures, including stricter penalties for bad behavior and permissionless exit triggers based on Ethereum Improvement Proposal 7002 (EIP-7002).

What this means:
This update is neutral for LDO holders. While it improves the security and reliability of the network, it doesn’t directly affect the demand for LDO tokens. It may, however, attract more institutional participants interested in staking Ethereum securely.

Conclusion

Lido DAO’s upcoming plans focus on strengthening its tokenomics through buybacks, expanding its ecosystem via bridge partnerships, and enhancing protocol security with validator exit updates. The buyback plan ties LDO’s value closely to Ethereum’s market performance, making it a higher-risk, higher-reward opportunity.

One question to consider: How might changing regulations around DAO responsibilities affect Lido’s governance and community involvement?

What updates are there in the LDO code base?

Lido DAO’s software updates focus on making the network more decentralized and secure.

1. Validator Exit Rules Update (October 2025) – Improved how validators leave the network, boosting security and giving node operators more flexibility.
2. Triggerable Withdrawals (July 2025) – Made it possible for anyone to start validator exits through smart contracts, without needing permission.
3. CSM v2 Launch (July 2025) – Raised limits on community staking and added identity checks for operators to encourage diversity.

Deep Dive

1. Validator Exit Rules Update (October 2025)

Overview: This update changes the process for node operators when they stop validating, adding stronger security checks and making exits smoother.

The new rules reduce risks of centralization by allowing third parties to monitor exit requests. Automated checks ensure validators are correctly linked to their staking groups and operators, which helps avoid mistakes.

What this means: This is positive for LDO because it makes the system safer and more appealing to new node operators, which could lead to more people participating in the network. (Source)

2. Triggerable Withdrawals (July 2025)

Overview: This feature lets anyone trigger validator exits using the Lido Withdrawal Contract, reducing the need to rely solely on node operators.

Built on Ethereum’s EIP-7002 standard, it allows users or third parties to initiate exits through blockchain transactions. The system includes checks to make sure exit requests follow the rules.

What this means: This change is neutral for LDO. It lowers the need to trust specific operators but might add some short-term complexity. Still, it fits well with Ethereum’s goal of open, permissionless participation. (Source)

3. CSM v2 Launch (July 2025)

Overview: The Community Staking Module now allows up to 10% of total stake and requires operators to verify their identities.

This update offers different rewards for verified independent operators and enforces stricter penalties for bad behavior. It also sets up a system to clearly identify community-run validators, helping decentralize the network.

What this means: This is good news for LDO because it encourages smaller and more varied operators to join, reducing risks from too much control by a few players and making the network stronger. (Source)

Conclusion

Lido’s recent updates focus on decentralization, security, and giving users more control—important factors for staying ahead in liquid staking. With talks about automated buybacks underway, it will be interesting to see how LDO’s token economics evolve alongside these technical improvements.