Lido DAO token surges 51% amid whale activity and reduced exchange supply By Investing.com

NEW YORK – In the cryptocurrency market, Lido DAO’s governance token, LDO, has experienced a notable surge in price, attributed to increased whale activity and a decrease in the token’s availability on exchanges. Over the period from October 8 to today, LDO’s price has rallied by 51%, a movement closely tied to several key developments observed within the token’s ecosystem.

During this timeframe, the supply of LDO tokens held on exchanges fell from 7% to 5.52%. This reduction in exchange supply typically indicates a lower propensity for selling among token holders, which can alleviate downward pressure on the asset’s price. This shift was accompanied by consistent withdrawals of LDO from exchanges, a pattern that often supports price appreciation as it suggests holders are moving tokens to private wallets for long-term holding or other purposes.

The bullish sentiment is further bolstered by on-chain metrics showing heightened activity among LDO holders. There has been an upswing in the number of active addresses and trading volume, which mirrors the token’s price increase. This heightened activity points to a growing interest and engagement with LDO.

Adding to the positive outlook are statistics revealing a substantial increase in the number of high-value LDO addresses. Specifically, the count of addresses holding between $1 million and $10 million worth of LDO tokens jumped by 19.76%, while those containing $10 million or more saw an even more impressive rise of 65.74%.

Currently, LDO is trading at $2.459 and appears poised to maintain its bullish momentum over the short term, supported by these encouraging on-chain indicators. The recent developments suggest a robust interest from larger investors and a potential shift in holder behavior towards accumulation and away from immediate selling on exchanges.

h2 InvestingPro Insights/h2 The recent surge in Lido DAO’s governance token, LDO, is supported by compelling data from InvestingPro. The 7-day moving average trading volume has seen an uptick of 31.5%, demonstrating increased market activity. The token’s market cap, currently standing at $1.09 billion, suggests there is considerable room for growth. However, the token’s volatility index over the past month is at 0.75, indicating that price swings may continue.

InvestingPro Tips, gleaned from this data, suggest that the rising trading volume and dwindling exchange supply could make LDO a good candidate for long-term holding. Nevertheless, given the relatively high volatility index, investors who prefer a less risky approach may want to diversify their investments. These insights are just a snippet of the wealth of information available on InvestingPro, which boasts hundreds more tips for savvy investors.

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