LDO is one of the best performers amongst the top 50 cryptocurrencies by market cap over the past seven days.
Lido DAO rallied by 20% in the last seven days but is slowly retracing.
The token’s rally comes after the Lido v2 mainnet launch.
LDO outperforms the other major cryptocurrencies
LDO, the native token of the Lido DAO, is the best performer amongst the top 50 cryptocurrencies by market cap over the past seven days.
The token added 20% to its value over the past few days despite the poor performance of the broader cryptocurrency market.
The rally was majorly fueled by the mainnet launch of Lido V2. Lido V2 enables Ethereum stakers to burn their stETH (staked ETH) and exit the protocol at a 1:1 ratio.
Another major catalyst behind this latest price rally is the return of depositors to the Ethereum network following the Shapella upgrade. As an Ethereum liquid staking platform, it is not surprising that Lido DAO has seen a surge in transactions over the past few weeks.
Lido DAO enables users to pool their funds to become validators on Ethereum. This allows investors to bypass the Ethereum network’s requirement of depositing at least 32 ETH.
What next for LDO?
Following its rally, what next for LDO? At press time, LDO is trading at $2.26 per coin, up by more than 4% over the past 24 hours.
However, LDO’s rally comes as the broader cryptocurrency market continues to underperform. If the fundamentals of the broader crypto don’t improve, LDO could retrace some of its profits.
LDO could test the $1.92 support level in the near term if the bearish trend in the market persists. However, if the bulls continue to be in control, LDO could rally toward the $2.5 resistance level over the next few hours or days.