How is Lido's 690% growth rate impacting the price of LDO?

In the context of the market continuing to weaken, projects that demonstrate genuine growth in user numbers, revenue, and development activities have become the focus of new capital flows. This shift has helped some cryptocurrencies record impressive daily growth, although most Layer-1 tokens remain subdued.

On December 25th, Lido DAO (LDO) joined the group of prominent projects, surpassing competitors amid cautious market sentiment. This development reflects a trend prioritizing protocols that deliver real economic value, rather than focusing solely on short-term speculative cycles.

Can the shift toward fundamental factors explain the relative strength of LDO?

Has LDO’s breakthrough in development attracted market attention?

According to data from Chain Broker, LDO is among the leading projects in development activity growth, increasing by 690% compared to the same period last year. This achievement has made LDO a symbol of sustainable technical commitment, far surpassing projects that only experience temporary spikes.

Source: X Usually, strong development momentum is a prerequisite for restoring investor confidence during prolonged sideways price movements. For LDO, stable growth indicators have helped reinforce market sentiment after months of downward pressure on Layer-1 tokens.

The breakthrough in development activity further affirms the protocol’s long-term position, especially in a challenging market environment. This is the foundation for positive short-term price movements.

Do revenue and transaction fees reflect LDO’s on-chain strength?

Data from Chain Broker also shows that products related to LDO are among the leaders in weekly fees and revenue. The protocol records approximately $14.3 million in transaction fees per week, demonstrating steady demand for staking infrastructure.

Source: X LDO’s revenue picture stands out compared to most Layer-1 projects, which faced difficulties after the October market peak. This performance indicates that the LDO protocol remains actively used despite the decline in speculative activities.

Revenue concentration on LDO further emphasizes selective resilience, rather than a broad recovery across the entire ecosystem. However, investors remain cautious due to potential technical risks.

Is LDO’s price rally sustainable after the October dip?

At the time of writing, LDO has recorded an impressive 7.65% increase, ranking among the top cryptocurrencies with the strongest daily gains. This move follows an attempt to break through the downward trend line formed since the drop on October 10th.

Momentum indicators currently do not give a clear signal; RSI hovers around neutral, while MACD shows the downward trend weakening but has not yet shifted strongly into an uptrend.

Source: TradingView The October decline exerted significant pressure on all Layer-1 tokens, causing many assets to fall below their yearly highs. In this context, LDO’s recovery is particularly notable, reflecting intrinsic strength amid a high-risk environment.

Source: CoinGlass However, data from CoinGlass’s liquidation heatmap shows dense clusters of leveraged positions around the $0.51 level. This warns that downside risks could re-emerge if market momentum weakens or macroeconomic conditions deteriorate.

Mr. Teacher