Lido adds 4% gains as protocol rolls out first step towards decentralization
- Lido takes the first batch of simple DVT validators to live, a step taken to decentralize the protocol.
- Lido leveraged technology to expand the protocol to multiple node operators, inviting both solo and community stakers.
- LDO price adds 4% on the day, climbing to $2.035 on Friday.
Lido DAO (LDO) is a blockchain that facilitates and offers users rewards for staking Ether. The protocol has taken the first batch of simple Distributed Validator Technology (DVT) live. To simplify, Lido is decentralizing, increasing the number of nodes, and opening validators to solo and community stakers. LDO price is edging up on Friday, trading near $2.035 and registering around 4% gains on the day.
Lido works on decentralizing the project
Lido announced that the Simple DVT Module went live on Thursday. Some months earlier, on October 26 2023, the Lido DAO community voted on the deployment of the module and took the first steps in decentralizing the protocol further.
The first batch of Simple DVT validators on Lido are now active pic.twitter.com/HbgHQwy8sv
— Lido (@LidoFinance) May 2, 2024
At its core, DVT as a system operates similarly to a multsig (multiple partners and consensus needed for access or control) setup for running a validator. Rather than relying on a single node operator, DVT will allow single and community stakers to fulfil validator responsibilities.
A node operator behind the X handle @KimonSh said that there are a total of 109 nodes, as of May 2.
Solo stakers using Lido are here!
— KimonShannon (@KimonSh) May 2, 2024
The Lido Node Operator set now has 109 total Node Operators - that's 195% growth with only @ObolNetwork Cohort 1!
Are you ready to see hundreds of Node Operators using the Lido protocol to run validators? https://t.co/2dwTyvg3mP
LDO traders react positively to news
LDO price edges up to $2.035 on Friday. The staking token adds 4% to its value in the day. LDO is climbing towards the Point of Control (PoC) on the Volume Profile indicator, at $2.345. This marks nearly 15% gains from the current price of $2.035.
LDO price has rallied consistently for the past three days. The Moving Average Convergence Divergence (MACD) indicator shows green histogram bars above the neutral line and MACD crossover above the signal line, a bullish sign for LDO buyers.
LDO/USDT 1-day chart
A failure to rally to resistance at $2.345 could invalidate the bullish thesis. In this case, LDO could test support at April 30 low of $1.817.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
