Lido DAO could begin its recovery as staking yield of stETH hits historical high
|- The recent surge of meme coins has pushed the staking yield of stETH to a record high.
- The current Annual Percentage Rate (APR) of staked Ether is at 8%.
- LDO price nosedived 15% over the past week, but a bullish catalyst could fuel a recovery.
Lido Finance, a liquid staking solution for Ethereum, currently offers the highest staking yield on stETH, a record high of 8%. The spike in the staking yield of Ether tokens is attributable to the recent surge in popularity of meme coins, according to a data panel.
Yield of staked Ether climbs to 8%
Based on data from Lido Finance’s analytics on Dune.com, the spike in meme coins has fueled a surge in activity on the blockchain. This rise in on-chain activity has caused an increase of the staking yield of stETH, which reached a record high of 8%.
Moving average of Lido post Merge APR from Dune Analytics
Staking yield is considered key to Lido’s utility and relevance in the crypto ecosystem as it involves traders staking their ETH for stETH, the staked Ether token, on Lido Finance.
Lido’s native token LDO experienced a 15% price decline between May 5 and May 12. This record high staking yield, however, could be a bullish catalyst for LDO.
LDO price gears up for recovery
Lido DAO (LDO) price is in an upward trend that started in July 2022. LDO price is below the three long-term Exponential Moving Averages (EMAs), 10, 50 and 200-day at $1.82, $2.13 and $2.03, respectively.
The Fibonacci extension from July 2022 to mid-Fed 2023 has laid out key support and resistance levels for LDO price. LDO needs to hold above support at 61.8% Fibonacci level at $1.57 to sustain its uptrend. A decline below this level could invalidate the bullish thesis.
LDO/USD one-day price chart
Immediate resistances for LDO in its recovery are the 50% Fibonacci level at $1.92, three EMAs at $1.82, $2.13 and $2.03, as well as the $2.09 level that acted as support throughout 2023.
In the event that LDO price deteriorates further, the 78.6% Fibonacci level at $1.07 could act as key support for the token.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.