- Lido’s TVL fell in recent days, owing in part to a drop in the value of LDO.
- LDO has risen by more than 9% in recent days, assisting Lido in becoming the leading DeFi platform.
Lido recently disclosed a decrease in its Total Value Locked (TVL), with the value of its native token LDO potentially contributing.
Prior to a slight drop, the staking platform was the leading Decentralized Finance (DeFi) platform. However, recent data from DefiLlama hinted at a change in the fortunes of the staking protocol’s TVL. The question now is, what could have caused this most recent development?
Lido’s TVL’s ups and downs
According to DefiLlama statistics, there has been a change in the volume of Total Value Locked of Lido Finance.
The staking platform’s TVL increased by more than 3% in the last 24 hours and by about 8% in the last 30 days. It was effectively the top DeFi platform as of this writing, with a TVL of $6.45 billion.
A closer look at Lido’s TVL revealed that two major events that shook the crypto world had a negative impact on the platform. Before Terra’s demise, the platform’s TVL was worth more than $18 billion.
However, as a result of the collapse, this value plummeted dramatically. The most recent negative impact was the FTX collapse, which caused the TVL value to fall from nearly $8 billion to $6.45 billion at the time of publication.
The price of LDO causes TVL to rise
One of the factors Lido identified for the initial decline in TVL was the decline in the value of LIDO’s native token, LDO.
A daily price assessment of LDO revealed that the asset had increased. It had risen by about 10% in the previous 72 hours. Furthermore, at the time of writing, it was trading at a profit of more than 1% during the trading period under observation.
The location of the short Moving Average (yellow line) indicated that the price was not in a strong trend. Because of the recent spike, the Relative Strength Index (RSI) line indicated that LDO had entered a bullish trend.
However, when the RSI and yellow line were combined, it was clear that, while the trend was bullish, it could have been stronger. At around $1.2, the yellow line also served as a region of resistance for the token. If it breaks through this resistance level, it could continue to rise.
Total address metrics are increasing
The evolution of Glassnode’s Total Address metric can be used to infer information about Lido. According to the total address count, the total number of addresses registered on the network was higher than before. More than 49,000 addresses were visible at the time of writing.