Lido price staged a strong comeback on the first trading day of the year after the network clarified on its reWARDS partnership with Dictum. LDO rose to a high of $1.262, which was the highest level since November. It has surged by more than 40% from the lowest point in 2022.
What is Lido?
Staking is one of the most important attributes of proof-of-stake blockchains. It allows people to provide their tokens to an exchange and then start earning rewards.
Liquid staking is another important feature of the blockchain industry. It refers to a type of staking that is relatively safer and more efficient. It is the act of delegating your tokens to a service that stakes for you without losing access to them. It lets you access your funds even when you are locking them. Liquid staking provides passiv income and access to your staked funds.
Lido is the biggest player in the liquid staking industry. It provides staking for some of the biggest players in the blockchain industry, including Ethereum, Solana, Polkadot, Polygon, and Kusama. It was also one of the biggest liquid staker for Terra.
Lido has had some challenges recently. The most important challenge was the collapse of Terra in May 2022. At its peak, Lido held billions in Terra assets. Most recently, it suffered as demand for Solana waned because of its exposure to FTX.
In the past few months, the total value locked in Lido moved from an all-time high of over $20 billion to about $5.9 billion.
LDO price rose after the network provided information about Dictum Exchange. After doing its due diligence, the network refused to transfer LDO to the exchange. Its due diligence showed that Dictum did not have any audit to be a blocker. It also found the company’s use of Lido reWARDS budget as a proof of endorsement as a red flag.
Lido price forecast
The four-hour chart shows that the LDO price has made a strong comeback in the past few days. It has moved above the important resistance point at $1.170, the highest point on December 14. The coin has risen above all moving averages while the Relative Strength Index (RSI) has moved above the overbought level. Lido will likely resume the downward trend as investors start taking profits.
