– Lido DAO tokens are likely being accumulated by institutions, according to on-chain data.
– LDO’s declining supply on exchanges and rising volume support a bullish thesis for the token’s price.
– LDO price has yielded 5% daily gains for holders and nearly 10% weekly gains.
Lido DAO token (LDO), a liquid staking token, is likely being accumulated by crypto asset management firms like Amber Group and trading firms like FalconX.Two catalysts, LDO accumulation by institutions and bullish on-chain metrics, could drive LDO price higher.
Also read:
Lido DAO price rally could extend as whales scoop up LDO tokens
Amber Group and FalconX likely accumulating Lido DAO tokens
According to data from on-chain intelligence tracker Lookonchain, wallet addresses linked with the Amber Group and FalconX withdrew LDO tokens from Binance.0x011D, linked to the Amber Group, withdrew 1.47 million LDO tokens worth $3.6 million early on Monday.The firm has withdrawn a total of 5.9 million LDO tokens, worth $14.5 million, in the past three months.
The
address associated with FalconX withdrew 1.26 million LDO tokens worth $3.1 million on Monday.
The crypto trading platform has withdrawn a total of $12 million in LDO in the past week.
Accumulation by institutional investors is typically bullish for an asset, as it reduces the circulating
supply and, subsequently, the selling pressure on the token.
On-chain metrics support LDO price gains
On-chain metrics like trade volume, supply of the token on exchanges and social dominance support a bullish thesis for LDO price.LDO’s trade volume has climbed alongside the price, supporting LDO price rally.
LDO trade volume and price
The social dominance of the token measures the relevance of the asset and its mentions, compared to other assets, among market participants on social media platforms like X (formerly Twitter).LDO’s social dominance hit a peak of nearly 0.2% on November 10 and has sustained above 0.027% since then, supporting the asset’s ongoing price rally.
LDO social dominance and price
LDO supply on exchanges, as a percentage of total supply, dropped from 6.42% on November 1 to 5.54% early on Monday.
LDO’s declining supply on exchange platforms aids the asset’s price climb, keeping the selling pressure off.
LDO supply on exchanges (as a % of supply) and price
At the time of writing, LDO price is $2.497 on
Binance, up 5% on the day.
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