YEREVAN (CoinChapter.com) — The price of Lido DAO’s governance token, LDO, is surging. Thanks to increased whale activity around the altcoin, it has surged 70% in the last month alone, taking its yearly gains to 115%.
According to data from the web3 data analysis tool Lookonchain, whales have been transferring large amounts of LDO tokens from exchanges to off-chain wallets.
As per the post made on X (formerly Twitter), one wallet withdrew 1.47 million LDO from Binance. This single transaction alone amount totals around $3.7 million at current prices. At the time of writing, LDO exchanges hands at $2.57.
Another wallet also withdrew 1.26 million worth of LDO tokens from the largest crypto exchange by volume. The total value at the time of writing is $3.2 million.
When whales take their holdings off from exchanges, it is usually a bullish sign. It indicates that they have no intention to sell them anytime soon are are planning to hold long-term. Serious investors only hold on to their tokens if they anticipate a price surge in the future.
Lido DAO (LDO) Token Price Jumps As Supply Decreases
Against the backdrop of the decreased supply of LDO tokens on crypto exchanges, the token is surging. According to CoinMarketCap, less than 2% of those holding the token are Whales.
However, only these 652 wallets control over 55% ($650 million) of the circulating supply.
With a market cap of $2.23 billion, the performance of Lido DAO’s governance token has been impressive over the past five weeks.
Between Oct. 21 – Oct. 27, LDO prices showed meager movements. It went from $1.54 to $1.85, with a slight weekly high of $1.98 on Oct 26.
In the following week, Oct 28 – Nov 03, the token charted a high of $1.92 but it went down to $1.76. The real surge, however, came between Nov 04 – Nov 10.
Having opened at around $1.93, LDO surged to a high of $2.47 on Nov 10, closing the week at $2.29.
Ever since, despite occasional price turbulence, the ERC20 token has been on an uptrend. On Nov. 16, LDO reached a high of $2.59 This is the highest the token has surged since April this year.
The decreasing supply will create scarcity and demand for the token. Holders hope it will in turn send its price up towards its all-time high of $11.00 from Nov. 16, 2021.