Lido DAO Surges to 10-Week High: What’s Driving the Rally?

Lido DAO (LDO) has diverged from the broader market weakness, extending its upward momentum to reach a 10-week high.

During early Asian trading hours, the token climbed to an intraday high of $0.39. At press time, it traded at $0.38, up approximately 10% over the past 24 hours. This contrasted with the total market’s 0.18% dip.

This latest move builds on a recent recovery, with LDO posting weekly gains of over 23% according to BeInCrypto Markets data. Its market capitalization stood at over $328.5 million, with a 24-hour trading volume of over $60 million.

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Holder Accumulation Fuels Lido DAO’s Rally

Network activity suggests the rally has fundamental backing. Santiment reported that Lido DAO recorded 141 new wallets created in a single day.

This marked the highest network growth reading in two months. The analytics firm tied this uptick to LDO’s price gain.

Nansen data reinforced the accumulation thesis. The top 100 LDO addresses increased their combined holdings to 792.77 million tokens, up 1.1% in one day.

Meanwhile, exchange reserves dropped nearly 1% over 24 hours and 2.92% on a weekly basis.

Declining exchange reserves typically signal reduced selling pressure. When tokens move off exchanges and into private wallets, it suggests holders are positioning for longer-term gains rather than preparing to sell.

The rally coincides with a governance proposal from the Lido Ecosystem Operations team to spend up to 10,000 stETH, roughly $20 million, from the DAO treasury to buy back LDO tokens.

Taken together, the signals point to improving underlying demand for LDO. If these trends persist, particularly alongside the proposed buyback initiative, the token might sustain its upward trajectory in the near term.

However, broader market conditions still remain a key factor in determining whether this rally evolves into a more durable trend.

The post Lido DAO Surges to 10-Week High: What’s Driving the Rally? appeared first on BeInCrypto.

Source: https://beincrypto.com/lido-dao-ldo-rally-accumulation/