Lido Is Quickly Becoming A Top Choice For Whales, Here’s Why

Data from WhaleStats reveals that Lido Finance’s token $LDO is the third most purchased token by the top 100 whales in the last 24 hours. The purchasing spree comes as LDO’s price falls by more than 6% in the last 24 hours. However, its price has gone up by more than 150% in the last 7 days.

The downward price movement could be due to Lido’s treasury diversification proposal to sell 2% of the LDO for $1.45.

Lido’s Major Moves

Lido’s treasury diversification proposal aims to attain long-term stability for the Lido DAO. The proposal asks to sell 2% of LDO, which is roughly 20 million LDO, from the DAO treasury. The sale would be at a 7-day time-weighted average price with a 50% premium. The proposal believes that this move can afford the company roughly two years of operating runway. 

The TWAP calculation done through Coin Gecko reveals the price of sale to be $1.45. 

The proposal also reveals that Dragonfly Capital, a crypto investment firm, has expressed its interest to lead the round. The proposal believes that Dragonfly can help with the development of Lido as the market-leading solution for liquid staking. 

The proposal highlights that the sale would be made for $DAI in the treasury. 

Lido is also launching stETH on Layer-2 solutions like Arbitrum. Arbitrum took to Twitter to support the migration. For the initial deployment, Lido will only support wstETH, which is the wrapped, non-rebasing version of Lido’s ETH. 

While LDO’s price decreased by almost 7% in the last 24 hours, it also increased by more than 150% in the last 7 days. 

The Whales Hold Lido

Not only is LDO the third most purchased token by the whales, but it is also 4th by trading volume. WhaleStats data also revealed that ETH whale Saitama brought 11,999,995 $LDO worth $17,519,994. 

The top 100 whales currently hold more than $20 million worth of $LDO.