Lido DAO (LDO) has surged 9.91% in the past 24 hours, reaching $1.45 at the time of writing, according to data from CoinMarketCap.
Notably, this breakout is accompanied by a surge of 122.74% in trading volume, bringing the total daily exchange value to $391.95 million. At the same time, the total value locked (TVL) of the protocol also approached $38.17 billion.
TVL is seen as an indicator reflecting the market's heat, as it directly measures the capital inflow and outflow of the platform and investor confidence.
From collapse to revival
Data from DeFiLlama shows that in January, the project's TVL once soared to nearly $35 billion, before witnessing a wave of capital withdrawal exceeding $20 billion — clearly reflecting investors' risk-averse sentiment.
However, the recent wave of capital inflow shows that investors are continuing to lock assets into the protocol — a promising signal for the future of this token.
In just the past month, LDO has recorded a 45% increase, including a strong bounce of 10.23% in just the last 24 hours (at the time of writing), clearly reinforcing the reversal in investor sentiment towards optimism.
Off-chain data shows expectations for price increase
Off-chain data shows that smart money is quietly preparing for the next price increases, as liquidity is pumped into the market in a consistent pattern with optimistic sentiment.
In the perpetual contract market across many centralized exchanges, trader sentiment is shifting positively. The aggregated funding rate in the past 24 hours reached 0.0094%, according to data from CoinGlass — a positive level reflecting the dominance of the buying side (Long) with a significant number of open derivative contracts.
Not only that, but open interest (OI) has also increased by $35 million, raising the total value to $273.66 million, indicating that buying pressure is increasing strongly and confidence in the upward trend continues to be reinforced.
The buying side enters the market
The sentiment in the spot market has shifted to a positive trend.
On August 10, LDO recorded a net capital outflow of $1.71 million from exchanges, indicating that this token is being transferred back to personal wallets — a clear signal that investors are accumulating strongly.
If buying pressure continues to be maintained, LDO could completely break through the $1.50 threshold, opening up the opportunity to progress straight to the technical target of $2.
The earnings report boosts sentiment
In the recently published Q2 report, Lido DAO painted a promising picture for its staking protocol.
The update shows that the amount of staked tokens has grown impressively, reaching 478,700 stETH, while reinforcing its leading position with the largest staking market share on the public cloud computing platform.
These positive signals are believed to have significantly contributed to LDO's recent price increase, while also stimulating optimistic sentiment in the spot market.