Lido price staggers ahead of the 1.5 million LDO token unlock
- At press time, Lido Finance (LDO) was trading at $1.47, down 1.41% in the past 24 hours.
- Lido Finance is set to unlock 1.5 million tokens in the next 24 hours.
- The tokens to be unlocked constitute approximately 0.27% of the circulating supply.
Lido Finance (LDO) has garnered notable attention lately, primarily due to its involvement in Ethereum (ETH) staking. However, an impending token unlock scheduled within the next 24 hours is poised to augment the circulating supply of its ecosystem token, LDO.
The key questions are how significant this token increase might be to the circulating supply and what potential ramifications it could entail.
Unlocking More Tokens at Lido Finance
In accordance with a post by Token Unlocks dated September 11, Lido Finance is slated to undergo its final token unlock on September 13. This unlocking event will introduce 1.50 million LDO tokens into circulation, valued at approximately $2.24 million, constituting approximately 0.27% of the circulating supply.
🚨 Unlocks Alert: $LDO 🚨
🗓️ September 13th, 2023 (In 2 days)
The final cliff unlocks with 1.5m $LDO for investors 🌟
Time is ticking. ⏰
Make your move.
— Token Unlocks (@Token_Unlocks) September 11, 2023
CoinMarketCap’s data indicates that the circulating supply of LDO at press time exceeded 888 million tokens. With the impending release of these unlocked tokens, the circulating supply is set to surpass 889 million.
According to data on CoinMarketCap, Lido Finance experienced a significant surge in trading volume over the past 24 hours. The volume chart on Santiment also depicts a minor spike resulting from this uptick. It’s worth noting that the volume had been on a declining trajectory until this recent surge.
As of the time of writing, the trading volume was well over $41 million.
Expected impact of the LDO token unlock
While token unlocks are known to cause a significant price drop due to a sudden increased supply, it may not be the case for the LDO token taking into account the prevailing state of trading volume at press time and historical trends. The forthcoming unlock of LDO tokens is unlikely to exert a substantial impact on LDO’s price trajectory.
Given that the total value of the LDO tokens set to be unlocked amounts to $1.5 million, or roughly $2.24 million, market conditions appear capable of absorbing this amount without causing significant disruption.