- Lido’s market dominance has fallen to its lowest level in the past year.
- The protocol has seen a significant increase in admissions.
The market share of the liquid staking protocol Lido Finance [LDO] on the Ether staking market has fallen to a one-year low.
According to a Dune Analytics dashboard, the share of ETH deposited into the beacon chain via Lido middleware was 29.1% at the time of writing. The last time it was below 30% was in February 2023.
Source: Dune Analytics
Year-on-year (YTD), Lido’s market share is down 8%. This decline is due to a spike in withdrawals from the liquid staking protocol over the past month.
On-chain data from Dune Analytics shows that since March 12, withdrawals from Lido have exceeded deposits made through the protocol.
Ranked as the staking platform with the most outflows in the past week, withdrawals from Lido at the time of writing totaled 117,000 ETH, valued at USD 35.69 million.
Source: Dune Analytics
Lido has witnessed a spike in withdrawals as the Annual Percentage Rate (APR) offered to users betting on the platform has declined.
As of April 10, the user-rated APR on a seven-day moving average was 3.28%, having fallen 14% since March 11.
What you can expect from LDO
At the time of writing, the protocol’s native token LDO was exchanging hands at $2.61. According to the last month, its value has fallen by more than 20% CoinMarketCaps facts.
The performance on the weekly chart indicated the possibility of a further decline in the medium term.
The Chaikin Money Flow (CMF), which measures the flow of money into and out of the asset, had crossed the zero line at the time of writing and was about to trend downward.
A CMF value below zero is a sign of market weakness. It indicates an increase in liquidity outflow from the market and a peak in selling pressure.
The Relative Strength Index (RSI) confirms the increase in the LDO distribution and at the time of writing was 40.69 and falling further.
This RSI reading showed that market participants preferred to sell their LDO shares rather than accumulate more tokens.
Furthermore, the dotted lines of LDO’s Parabolic SAR indicator were above the price at the time of writing.
Source: BNB/USDT on TradingView
Realistic or not, here is the market cap of LDO in terms of BTC
This indicator measures the potential reversal points in an asset’s price direction. When the dotted lines are above the price of an asset, it is a bearish signal.
It confirms that the price of an asset is falling, and that the decline will continue if sentiment remains the same.