• Lido finance token (LDO) is currently held by whales, accounting for 87% of the supply.
• Despite whales holding at a loss, they are continuing to accumulate LDO tokens.
• Retail traders have been unable to keep up with the whale activity as only 13% of the supply is being held by them.
Whale Activity on Lido Finance Token
Establishing Itself as the Go-to Staking King
Lido finance token (LDO) has been rapidly establishing itself as the go-to staking king. As of this writing, 87% of the total supply was held by large holders or “whales” – despite these whales holding at a loss. This means that only 13% of the total supply is being held by retail traders.
Increased Whale Transactions
Interestingly, even though more holders were in loss than those in gains, 66% of all whale transactions occurred within the last 365 days due to Lido’s rise to prominence and its contributions to Ethereum blockchain activity, such as introducing V2 with additional upgrades. Some of these transactions have been withdrawals, suggesting that accumulation might not be short-term objectives for whales.
Retail Traders Keeping Up?
Unfortunately for retail traders, it hasn’t been easy keeping up with whale activity either – although small holders with 0-100 tokens have joined in on their accumulation hunt. But not every group has participated; for instance 10-100 token holders resisted intense load-up pressure from whales.
Although there has been an increase in whale transactions lately according to Santiment data, their rate has also decreased. Thus suggesting that there may be no cause for panic about increased selling pressure from whales just yet.
Whales seem to think that LDO tokens are extremely undervalued despite holding them at a loss and continue to accumulate them despite withdrawals occurring among them too. Unfortunately, retail traders haven’t been able keep up with this activity but some small groups have joined in on their accumulation hunts in hopes that they will benefit from any future price increases when more people start accumulating and using these tokens as well as staking them on Ethereum’s blockchain network.