Lido DAO (LDO): On-chain Data Shows Not All Is Well With Whales

Lido DAO (LDO) News: More and more traders of Ethereum liquid staking protocol Lido DAO (LDO) are looking to accumulate LDO ahead of the Shanghai upgrade. However, there seems to be a growing deviation in terms of accumulating and selling LDO tokens. The Ethereum (ETH) Shanghai update, which allows stakers to withdraw their staked funds, is scheduled for March 2023. Although the event looks to be on track for deployment in March, any changes could possibly delay the upgrade.

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Lido Whales Selling

On chain data shows that the Lido whales holding 1,000,000 to 100,000,000 LDO tokens have been on a selling spree while those holding 100 and 1,000,000 LDO tokens are on an accumulation phase.

How Shanghai Upgrade Will Turn Out

The Shanghai upgrade is the most anticipated development initiative for the Ethereum community after The Merge. Contrary to popular market opinion, The Merge event did not come off as a ‘buy the news’ event and the ETH price did not shoot up after the upgrade was completed in September 2022. Similarly, there is a section of the community that believes the Shanghai upgrade will fail to reflect price upside for ETH. It is argued that as opposed to the perception that the staked ETH will be withdrawn, more tokens will be staked after the upgrade.

According to Leeor Shimron on Twitter, the upgrade could lead to reduced selling pressure with more tokens staked than withdrawn.

“Opening withdrawals may lead to a higher number of tokens staked and reduce sell pressure, as it could assuage would-be stakers that their tokens are freely redeemable and no longer locked for an indeterminable amount of time.”

If this view goes on to be true, against the market expectation, Ethereum (ETH) as well as Lido DAO (LDO) price could see negative action. As of writing, Ethereum price stands at $1,579, down 1.55% in the last 24 hours, according to CoinGape price tracker.