Lido Price Plummets 9%: But Does it Signal Long-term Bullishness?
Lido's price plummeted by 9% on August 1, but does this decline signal a structural shift or just a reflection of the bearish sentiment across the broader crypto market? To gauge whether the market leans bullish or bearish, we examined on-chain inputs.
The protocol's total value locked (TVL) fell by $414 million over the past day, bringing it down to $17.573 billion. However, what matters is the broader outlook, where dominance remains strong and the recent dip fits the structure seen across the last 30 days.
In this context, the past day's decline resembles the pattern seen throughout the period, raising a strong possibility that inflows could resume. A rising TVL ultimately points to a long-term bullish outlook.
The decline coincides with a surge in token holder income through July, which hit $2.08 million, the highest since the program began. This income functions as a buyback that helps manage the token's supply in the market.