LDO, the native token for the Lido Finance liquid staking protocol, is currently posting some impressive gains as a result of improved fundamentals and the market’s short-term recovery. However, what is next for the asset, and should investors be excited?
LDO Outpaces Market Gains
As February gets underway, the crypto market has also been quick to post gains, erasing most of the losses suffered going into the week. The entire market is up by 0.51%, with its capitalization again climbing above the $1.05 trillion mark.
Like many altcoins, LDO has also managed to post gains. Trading at $2.15, the asset’s price is up by 4.15% in the past 24 hours. Its ability to outperform the market has helped it significantly, although LDO investors continue to watch for possible signs of a retracement.
Despite its price surge, it is worth noting that LDO’s technicals still leave a little to be desired. The digital asset is trading below all its moving average (MA) indicators, ranging from the 10-day MA of $2.16 to the 200-day MA of $2.18.
A negative moving average convergence divergence (MACD) shows that LDO is giving off a sell signal. However, the asset’s relative strength index (RSI) of 32.04 shows it is now very much underbought. Interestingly, LDO’s RSI has continued to drop, even though the asset’s price has risen on the 24-hour window.
ETH Staked on Lido Hits Fresh Milestone
Lido Finance and other liquid staking services have been seeing significant popularity following the Ethereum Merge last September. According to blockchain forensics service and data provider IntoTheBlock, the amount of ETH staked on the platform has been on an impressive rise.
IntoTheBlock reported recently that 5 million ETH has now been staked on Lido. This is almost a third of the total amount of ETH staked on the Ethereum Beacon Chain, which, according to Etherscan, is about 16 million.
ETH stakers are also excited as they are another step closer to accessing over $26 billion worth of the asset staked. Parithosh, a developer with the Ethereum Foundation, recently confirmed that the Zhejiang public testnet, which will test public staked ETH withdrawal, is expected to launch later today.
The mainnet shadow fork is expected to test the viability of ETH staking withdrawal – a feature set to launch when the Shanghai update kicks in fully by March.
Market Awaits Interest Rate Decision
Investors would also be looking to find out how the Federal Reserve votes on interest rate policies this week.
The Fed is expected to release its interest statement later today, detailing whether it intends to raise or drop the metric. With inflation in the United States dropping and the economy also on the rise, there is massive optimism that the Fed could drop interest rates this month.
A reduction in interest rates should signal even more faith in the economy and free up capital for investors to back risky assets like crypto.
LDO Alternatives
As the market continues to adjust, investors would want to consider assets that can deliver steady gains. Several other assets are set to gain as the market rally kicks into high gear. One such name is MEMAG.
MEMAG, the Meta Masters Guild’s crypto token, is one of the hottest new coins on the market right now. The MMG is elevating gaming by combining a decentralized community and blockchain technology.
The platform aims to create an engaging environment that promotes entertainment and connection while addressing contemporary issues gamers face. The digital asset raised more than $2.37 million in its presale, and its numbers continue to impress.
Meta Masters Guild – Play and Earn Crypto
- Innovative P2E NFT Games Library Launching in 2023
- Free to Play – No Barrier to Entry
- Putting the Fun Back Into Blockchain Games
- Rewards, Staking, In-Game NFTs
- Real-World Community of Gamers & Traders
- Round One of Token Sale Live Now – memag.io
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