On-chain analyst Lookonchain has tied Lido’s (LDO) recent sharp decline to crypto company Jump Trading in a Jan. 31 Twitter thread.
LDO declined by around 10% on Jan. 27 when Jump Trading started transferring its holdings to crypto exchange Binance, the analyst said.
The same scenario happened 13 hours ago when Jump Trading started transferring its assets to Binance — dropping its value by 5%.
Over the last 24 hours, Jump Trading has dumped roughly 65,000 LDO tokens, according to Etherscan data.
Lookonchain said that Jump Trading’s LDO dumping could still affect the token because it holds 3.92 million LDO tokens — worth $8.2 million.
Lido’s price performance
Lido has been one of the best-performing digital assets over the past month, rising by 92%, according to CryptoSlate data.
However, the token has experienced a sharp sell-off in the last seven days, falling by roughly 20%. It further declined by 7.96% in the previous 24 hours to $2.09 as of press time.
The Ethereum (ETH) staking protocol is also the dominant DeFi protocol based on the total value of assets locked (TVL) in its ecosystem, according to Defillama data. Meanwhile, its TVL declined by 4.04% in the last 24 hours to $8.01 billion.
Lido’s website shows that its TVL is $8.007 billion. According to the site, $7.86 billion in Ethereum were staked via its platform. Other assets, like Polygon (MATIC), Solana (SOL), Kusama (KSM), and Polkadot (DOT) have a combined value of $147.07 million.
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