Institutions Stacking Up Lido DAO: Time to Buy?

Recently, Paradigm Capital moved approximately $96.6 million worth of Lido DAO (LDO) tokens (70 million LDO), in which 8.18 million LDO ($11.29 million) was sent to Coinbase Prime and 61.82 million LDO ($85.31 million) sent to what appears to be a new wallet.

So, Paradigm’s recent move seems like they are playing the long game with their LDO assets. The transfer follows Paradigm’s initial acquisition of 70 million LDO tokens on May 5, 2021, when the token was worth $0.76.

Paradigm had locked 15,120 ETH (around $53,25 million) at that time to secure their LDO holdings. This latest transaction shows Paradigm choosing to move most of these tokens into the new wallet.

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This could be a way of holding or migrating the tokens for further term gains rather than just a money grab.

LDO’s price has jumped by around 20% over the last 24 hours, currently trading at $1.34. It has also seen a notable rise in volume, matched with a whopping 104.12% increase in volume, as it had a new 24-hour volume of $295.78 million.

Paradigm’s massive transfer and the steep increase in volume and price suggest heightened institutional and retail demand. Lido DAO’s market cap is currently $1.20 billion, which is up 17.04%.

Technical Analysis: Is LDO Ready for Another Rally?

In a closer analysis of LDO’s price movement, we see a strong uptrend. The price earlier today rallied up to $1.45 on the 1-hour chart before the price consolidated around $1.34.

It’s a bullish signal, as was Paradigm’s large transfer. A subsequent influx follows this in buying action.

The Money Flow Index (MFI), in its current condition, stands at 52.50, and the neutral value suggests there is neither an overbought nor oversold condition. This indicates that LDO has room to travel in either direction (upside potential as well as a retracement/consolidation).

According to CoinMarketCap, the Volume-to-Market Cap ratio stands at 24.40%. Increasing interest and liquidity, signaled by a high volume relative to market cap, are suitable for short-term price stability.

LDO’s current price level is supported by significant trading activity, which would ideally be the catalyst for stable price growth as long as this interest is sustained. In addition, the bullish trend also fits in with a broader market interest in DeFi assets.

As Lido DAO continues to capture more and more of the staking market, the demand for LDO has the potential to be naturally driven by DeFi growth alongside an increase in staking use in Ethereum’s ecosystem.