With the Ethereum Merge just a few weeks away, happenings around the number one protocol facilitating the staking of ETH – Lido Finance – have become more interesting. Data from Santiment revealed that over the last few months, Lido’s native token, LDO, exhibited divergences in some of its on-chain metrics. In fact, according to Santiment, […]
revealed that over the last few months, Lido’s native token, LDO, exhibited divergences in some of its on-chain metrics.
In fact, according to Santiment, these divergences are signs that buyers have slowed token accumulation.Santiment, in its latest report, highlighted that since around 2 August, LDO has exhibited a divergence between its price/volume. A divergence between these two on-chain metrics occurs when the price of a token rises and instead of a corresponding rally in trading activity, the token’s trading volume continues to drop.
The price of LDO has grown by 27% since the aforementioned date. On the other hand, its trading volume has declined by 8%.Another divergence spotted on-chain was LDO’s price/transaction volume divergence. Santiment also revealed that while the price per LDO grew by over 213% since mid-July, the aggregate amount of LDO tokens involved in all transactions executed between then and press time dropped by 82%.Source: Santimentby over 400%, has started to wane.
“… this suggests that the excitement around LDO is dwindling, which usually translates to less new buyers to join in the fun.”Additionally, LDO highlighted a divergence between its price and its Age Consumed. A token’s “Age Consumed” is the amount of tokens changing addresses on a certain date, multiplied by the time since they last moved.
Usually, a spike in this metric indicates that previously idle tokens are starting to change addresses and can be a precursor to a price rally. However, the reverse has been the case for LDO since 20 July. At press time, while the price was up by 86% since then, Age Consumed declined by 98%.Finally, addresses holding between 10,000 to 100,000 LDOs have reduced their holdings gradually since 22 July.Subscribe to get it daily in your inbox.
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