Navigating Challenges: LDO Holders Face Difficult Market Conditions
Overview of Lido DAO’s Onboarding Round
• Lido recently launched a new program to expand the node operator set.
• The primary motive behind this onboarding round is to improve client diversity, reduce the overall footprint of NOs and increase the presence of NOs outside of the US and Europe.
• Despite leading in net deposits to Beacon Chain with more than 112,000 ETH, LDO was down by over 19% last week.
Improvement in Client Diversity
The Lido Node Operator Subgovernance Group (LNOSG) has suggested to the DAO that an onboarding round take place for the Lido on Ethereum [ETH] protocol. This onboarding round will focus on improving client diversity, reducing the overall footprint of NOs using public cloud as their primary server location and increasing presence of NOs outside of US and Europe.
Leadership in Net Deposits to Beacon Chain
Lido’s recent tweet revealed that it was the leader in net deposits to Beacon Chain with over 112,000 ETH. It was also mentioned that despite current turbulent crypto market conditions, stETH/ETH remained stable however a decline in 7-day moving average for stETH APR was noted which went down by over 4%.
Decline in Price Last Week
Due to bearish market condition, LDO’s price registered a considerable decline last week. According to CoinMarketCap, its value declined by over 19% in past seven days and at press time it was trading at $1.80 with a market cap of $1.5 billion.
Altcoin LDO holders have more challenges to overcome due to declining prices but have potential for growth with newly proposed onboarding rounds aiming for increased client diversity and presence outside US & Europe