Lido’s Impressive Rise Amid Ethereum ETF Approval Spurs Investor Interest

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Lido (LDO), a liquid staking protocol dedicated to the Ethereum (ETH) and Polygon (MATIC) blockchains, has enjoyed an impressive elevation in price over the last day. The surge arrives on the back of much-anticipated approval of spot Ethereum ETF applications by the US Securities and Exchange Commission (SEC), declared on Thursday of this week.

The proprietary currency of the protocol, LDO, has triumphantly reclaimed its standing at the $2.30 level. It is currently poised to shatter its month-long downtrend pattern, a fixture since the market correction back in April.

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This surge in interest was catalyzed by validations from the SEC detailed in an official document. These confirmations underlined that the proposals reached the criteria of the Exchange Act, as well as applicable regulations that govern national securities exchanges.

Approved proposals included those from reputable entities such as BlackRock, Grayscale, Bitwise, VanEck, Ark Invest/21Shares, Invesco Galaxy, Fidelity, and Franklin Templeton. The commission scrutinized these to ensure they fulfilled the prerequisites to preclude fraud and manipulation, to shield investors comprehensively, and to preserve the public interest.

Esteemed crypto analyst, Daan Crypto Trades, underscored the effects of the Ethereum ETF approval by pointing out the creation of two prominent winning sectors, with Liquid Staking Derivatives (LSD) coins leading sector one. Lido, a pioneer in this field, offers staking facilitation for the Ethereum blockchain, sidestepping the need to lock tokens or uphold infrastructure. This liberates participants to delve into on-chain ventures, such as lending and farming.

Friday began with LDO hitting a zenith of $2.49 only to retrace its steps to its present transaction price of $2.35. This movement spurred the interest of a big investor pool, with Spot On Chain data revealing that six new major investors withdrew an impressive 4.3 million LDO, equivalent to $9.59 million, from the crypto exchange Binance within the past 24 hours.

These recent developments hint at a growing proclivity for holding onto the token. Revised sentiment anticipates a potential rise in LDO’s price in parallel with Ethereum once the newly sanctioned index funds for the second-most considerable cryptocurrency hit the market within the upcoming months.

CoinGecko data additionality displays Lido’s trading volume to be at $350 million over the last day, suggesting a 78.60% uptick from Thursday’s transactions. However, token pricing still remains 68% adrift of its all-time peak in prices at $7.30, recorded in the 2021 bull market.

Looking towards the future, bullish investors should monitor the next resistance level in the LDO/USD daily chart, located at $2.55. Shattering this threshold could potentially dismantle the downtrend structure and pave the way for further retests at $2.70 and $2.90. As for support, investors should keep an eye on the $2.21 zone as it has served as formidable bulwark for Lido over the past week, prior to the breakout.