Lido (LDO) Faces Massive Correction As Token Losses Mount To 20%

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The Lido (LDO) short-term position continues to be compromised in the face of a market-wide correction phase, dragging the altcoin market to the mud. As of writing, the token has lost over 20% in value, representing a massive flip in investor sentiment. The market has not been faring any better as it lost nearly 2% in value, wiping nearly $800 million in market cap in the past 24 hours. 

Lido’s development persists despite the market’s apparent bearishness, the most recent of which might drive retail interest on the platform sky-high. However, with the market acting as a chaotic background for LDO, it might come later than what investors and traders expect. 

Lido DAO Announces Community Staking Early Adoption Program

Yesterday, October 5, Lido’s official X account announced the Community Staking Module (CSM) Early Adoption program designed specifically for solo stakers who want to taste the CSM environment before its initial launch.

According to the X post, stakers eligible for the program can enjoy early access to the CSM mainnet, a reduced capital requirement from 32 ETH to just 1.5 ETH, and a potential 2.37x higher reward per ETH. 

In addition to these benefits, eligible operators are also allowed to run 12 validators. According to Lido’s blog post, the limit will only be lifted after the early adoption phase. 

To ensure that only solo stakers will have the opportunity to enter the program, Lido has put out specific filtration rules that will check each applicant if they are eligible for the program. 

This development will ultimately stimulate retail interest in the platform as it lowers the economic barrier to participating in the network. However, its strict rules regarding the eligibility of community members and network users to be part of the CSM Early Adoption Program hinder any potential gain in the long-term of the network as only a handful of users can participate in the reduced financial burden brought by the program.

$0.88-$1.13 Range Holds Little Promise For LDO

As of writing, the token is struggling to hold the weight of the bearish pressure that has overtaken the market by storm. LDO bulls do not have the same momentum as the bears which may lead to a short to medium-term continuation of the downward trajectory. 

The token’s relative strength index, however, is hinting a possible reversal in the medium term timeframe which might lead to LDO keeping its current trading range in the next couple of days. 

Investors and traders should monitor the broader market’s movement in the coming days as LDO’s correlation with the major cryptocurrencies will play a huge part in its future price movement.

Featured image from Pexels, chart from TradingView

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