Lido DAO token price reveals long-term effects of supply dilution
The post Lido DAO token price reveals long-term effects of supply dilution appeared on BitcoinEthereumNews.com. Lido DAO (LDO) revealed the effect of running a low-float coin initially. While the project grew, the value of LDO was stuck in a range. Lido DAO is growing by all possible metrics, except for its token price. Traders noticed that LDO was stagnant, though reporting a much higher overall market capitalization. Lido DAO is a case study in low-float coins, which have a different price cycle compared to previously launched fully diluted assets. The inflow of new LDO tokens started in 2021, combining several linear unlocks. Lido DAO released tokens from investors and founders over the course of a year. The venture round tokens and validator rewards were also unlocked in 2021. As of 2024, more than 90% of the supply is in circulation, and no cliff unlocks are expected. Despite this, LDO had a flat price performance, not reflecting the growth of users or fees. Since the observation, LDO still managed to break out, trading at $2.05. The token’s history reveals the effect of unlocks, which coincided with the price slide from highs of $6.25. 3 years ago, in July 2021, $LDO price was $1.85 and had a market cap of $40 million. Today, $LDO price is $1.85 and has a market cap of $1.7 billion. How? Magic fundamentals. pic.twitter.com/7Ra5ff4GzB — Res (@resdegen) July 17, 2024 Lido DAO’s path may show the future of other liquid staking projects The trajectory of LDO now raises questions about other ETH staking projects like EtherFi or Ethena. Not all unlocks are bearish, depending on market conditions. But those projects may be affected by their low float and potential selling pressure. In the case of Ethena (ENA), the market has absorbed only 1.7B tokens, out of a total supply of 15B. ENA is still at the beginning of its unlock schedule, with…
The post Lido DAO token price reveals long-term effects of supply dilution appeared on BitcoinEthereumNews.com.
Lido DAO (LDO) revealed the effect of running a low-float coin initially. While the project grew, the value of LDO was stuck in a range. Lido DAO is growing by all possible metrics, except for its token price. Traders noticed that LDO was stagnant, though reporting a much higher overall market capitalization. Lido DAO is a case study in low-float coins, which have a different price cycle compared to previously launched fully diluted assets. The inflow of new LDO tokens started in 2021, combining several linear unlocks. Lido DAO released tokens from investors and founders over the course of a year. The venture round tokens and validator rewards were also unlocked in 2021. As of 2024, more than 90% of the supply is in circulation, and no cliff unlocks are expected. Despite this, LDO had a flat price performance, not reflecting the growth of users or fees. Since the observation, LDO still managed to break out, trading at $2.05. The token’s history reveals the effect of unlocks, which coincided with the price slide from highs of $6.25. 3 years ago, in July 2021, $LDO price was $1.85 and had a market cap of $40 million. Today, $LDO price is $1.85 and has a market cap of $1.7 billion. How? Magic fundamentals. pic.twitter.com/7Ra5ff4GzB — Res (@resdegen) July 17, 2024 Lido DAO’s path may show the future of other liquid staking projects The trajectory of LDO now raises questions about other ETH staking projects like EtherFi or Ethena. Not all unlocks are bearish, depending on market conditions. But those projects may be affected by their low float and potential selling pressure. In the case of Ethena (ENA), the market has absorbed only 1.7B tokens, out of a total supply of 15B. ENA is still at the beginning of its unlock schedule, with…
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