Lido DAO may not be the most well-known protocol or token in the crypto space, but at one point it was worth far more than any other DeFi asset.

Currently, the altcoin is exhibiting similar traits by leading the DeFi market out of bears’ territory.

What is Lido DAO?

It is a rising star in the field of Decentralized Finance (DeFi). Although it only noticed the demand in the last few months, it took center stage for a while after the liquid staking protocol became the largest Dapp, worth more than $20 billion in total.

However, it was unable to survive the impact of the May and June crash. And in the end, it lost more than $15 billion.

Lido DAO TVL | Source: DeFi Llama – AMBCrypto

With Lido’s TVL now at just under $5 billion, Protocol relies heavily on its investors to return to the Dapp. This can only happen when the broader market recovers, and Lido DAO’s native token LDO makes that possible in some ways.

LDO led the rally in DeFi assets, shooting up 40.22% from the June 20 low to trade at $0.638. The gain, while not enough to void a week’s losses of 43%, did push the coin closer to hitting it.

Lido DAO price promotion | Source: TradingView – AMBCrypto

Part of this rebound was also triggered by the announcement of the altcoin’s listing on CeFi’s Huobi exchange on June 20.

Anyway, LDO holders seem to be at peace with the eventual demise of the crypto market since May itself.

The on-chain sale, which followed the May 9 crash, significantly increased holdings of the crypto exchange’s wallets.

This was because investors sold heavily during the crash and lost 26 million LDO worth nearly $17.92 million, representing 7.7% of the circulating supply.

Lido Token Stock on Exchanges | Source: Santiment – ​​​​AMBCrypto

Frankly, selling was the right move as a majority of investors have been losing money since the beginning of this year.

The rise in Lido DAO’s TVL has certainly improved the circumstances of most investors, but after the crash, only 1k investors managed to avoid losses, leaving 92.33% of all investors eager for profit.

Lido investors in loss | Source: Intotheblock – AMBCrypto



This post Did Lido DAO’s 42% rally drive the DeFi market recovery?

was published first on https://ambcrypto.com/did-lido-daos-42-rally-trigger-the-defi-markets-recovery/

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