Lido Finance’s unpacking [LDO] deployment of holders after this major move

• LDO registered one of the largest transfers since it entered the market.
• Lido Finance continues to lead the DeFi TVL leaderboard by a wide margin.

For the first time in two years, Lido Finance [LDO] recorded the token’s largest movement, Santiment revealed. The transaction, valued at $135 million, took place on May 6. According to Santiment, it was the eighth largest LDO transfer since inception.

How many Worth 1,10,100 LDOs today?

But a notable part of the action was that the tokens were not sent to an exchange. Instead, they were moved from a self-custodian address to another address with the same function.

😮 #LidoDaothe #35 asset in #crypto by market cap, just saw its largest transaction in 2 years worth over $135 million $LDO moved from one custody address to a new one. The transfer of 70 million coins is the 8th largest move of all time on the network. https://t.co/16DGERnaxo pic.twitter.com/16P2zN6FLW

— Santiment (@santimentfeed) May 6, 2023

Firmly believe with the protocol

Typically, a situation like this implies that the asset holders had decided to stay with LDO for the long haul. And as such, they were unwilling to give in to the determination. The decentralized liquid strike protocol for Ethereum [ETH] has been gaining momentum for some time now.

And it is not a new development that the protocol covers a large percentage of all pinned Ether [stETH] deposited before that of Ethereum activation of recordings. It has maintained a significant edge over its counterparts.

But before the last token transfer, on-chain data showed minimal movement of long-term positions. According to Santiment, the 90-day dormant circulation was 18,300.

Although it was important to point out that there was also a spike in the metric on May 2. However, for most of the past three months, LDO has been in the pockets of these holders. This suggests that many holders are joining the decision to keep their chips.

Source: Sentiment

In addition, the realized market capitalization HODL (RHODL) waves had increased significantly at the time of going to press. This metric adopts the HODL waves by evaluating the number of LDOs with a long-term view. But here too it is considered to apply the realized ceiling as a ratio. By doing this, the metric can deduce when there is euphoria in the market to sell.

So far it’s not the top yet

While the RHODL waves skyrocketed to 22.05, the price of LDO did not follow in the same direction.

So this implies that long-term holders were unwilling to say goodbye to LDO on the macro time horizon. But in a situation where the metric increases with price, it may suggest the opposite.

In terms of Total Value Locked (TVL), Lido’s value had fallen from the peaks recorded in the first few months of the year. The TVL acts as one strong indicator used to measure the growth of a protocol.

Read Lido DAOs [LDO] Price prediction 2023-2024

The TVL realizes this by taking into account the rate of deposits in smart contracts related to the project. At the time of writing, the Lido TVL was $12.22 billion – down 2.22% in the past 24 hours.

Source: DeFiLlama

Still, it represented an increase on a Year-To-Date (YTD) basis, only user liquid input was slightly down. Finally, this level of involvement from LDO holders is a positive indicator of the strength of the community and its collective belief in the long-term value proposition of the project.