Lido (LDO) Plummets Over 20% In Past Week, Here’s Why
Leaving aside the overall downtrend in the global cryptocurrency market, the Lido Finance (LDO) token has been moving in a bearish direction last week. While the universal bearish trend may have contributed Downtrend LDO research last week proves it’s more than that.
Over the past week, LDO has recorded a sharp price decline, dropping 22.4% from a high above $3 as of March 3 to $2.35 at the time of writing. According to Coinmarketcap, over $500 million has been withdrawn from its market capitalization during the same period.
Two instances on Lido (LDO) are down in the last 7 days
recent Lido fall in price can be attributed to the recent announcement Mixbytes, the development team behind Lido Finance, announces the end of support for liquid staking on Polkadot and Kusama.
This announcement resulted in the majority of liquid Polkadot and Kusama participants being removed from the Lido Finance protocol, negatively impacting both its total value locked (TVL) and the price of the native token. According to the data, over the past 7 days, TVL Lido has fallen along with the price of LDO, falling by 5.7%. Defilama.
Mixbytes has stated that it will no longer “develop and maintain” Lido on Polkadot and Kusama as of August 1st. In addition, as a result of the upgrade, users will not be able to deposit funds for bet in Lido for Polkadot and Kusama protocols as of March 15th.
In addition, Mixbytes further stated in the announcement that it is working on an alternative host for the UI to be launched by the community on August 1st.
Going back to the reason for last week’s LDO decline, another example is the ongoing rumors. shares Bezbankovsky David Hoffman.
According to Hoffman, the US Securities and Exchange Commission may have issued a Wells notice to Lido and some other crypto projects in the industry. A Wells notice is a formal letter sent by the SEC informing the recipient or firm that it plans to take enforcement action against them.
Although Hoffman eventually dismissed the rumorssince there has been no official confirmation of the news yet, it can be attributed to one of the reasons for the fall of LDO last week.
LDO continues the downtrend
The last few weeks have not been favorable for LDO as the token continued to suffer from a downward trend after several negative news circulating in the industry as well as the events mentioned above.
Lido Finance (LDO) price is moving sideways on the 4-hour chart. Source: LDO/USDT on tradingview.comThe LDO trend over the last 24 hours has also been no different as the token is currently down 8.5% over the last day and the trading price is just above $2. The trading volume of the token has also decreased, indicating a possible ongoing downtrend.
LDO trading volume fell from a high of $239 million on March 3 to a low of $89 million in the last 24 hours. It is noteworthy that, despite the long downward trend, I DO According to Coinmarketcap, it still ranks 30th in the list of cryptocurrencies with the largest market capitalization.
Credit : www.newsbtc.com