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Lido Token LDO price soared 64.5% as the liquid staking sector shows strong recovery
Lido Token price soars, liquid staking track gains attention
Recently, the leading project in the liquid staking field, Lido (LDO), has seen a significant increase in its Token price. Data shows that as of August 11 at 10:00, the LDO quote was 1.52 USDT, with a 24-hour increase of 14.21%, and a remarkable rise of 64.5% over the week.
As the largest liquid staking protocol in the Ethereum ecosystem, Lido has long held the top position on the total value locked (TVL) leaderboard of the entire blockchain ecosystem. Although it has recently been surpassed by a certain lending platform, Lido remains one of the most influential projects in the Ethereum ecosystem.
The recent price increase of LDO can be analyzed from both macro and micro levels.
On a macro level, the U.S. Securities and Exchange Commission (SEC) released a statement on August 6 regarding liquid staking activities. The statement clearly indicated that "liquid staking activities" associated with protocol staking typically do not involve the issuance and sale of securities, unless the deposited crypto assets are part of an investment contract. This statement clears regulatory obstacles for the future development of liquid staking projects.
In addition, a large asset management company has submitted an application to the SEC, hoping to introduce a staking mechanism in its spot Ethereum ETF. Considering that Lido currently accounts for nearly 25% of the Ethereum staking share, the market generally expects this move to bring business growth and capital inflows to Lido.
At the micro level, the Lido community recently discussed the LDO buyback plan. A community draft proposed dynamically executing LDO buybacks based on the balance of funds in the Lido treasury to improve capital efficiency and support the price of LDO. The proposal suggests that, under the current treasury reserve scale, 70% of liquid assets be used for regular buybacks of LDO, with 30% reserved for operational and strategic needs.
Although there are some differences within the community regarding the specific details of the buyback plan, most members support the buyback. Considering LDO's strong price performance recently, the market holds an optimistic expectation for the implementation of this plan or its derivatives.
As an important project in the Ethereum ecosystem, LDO's performance over the past period has been unsatisfactory. However, under the dual impetus of favorable macro policies and the community's buyback plan, LDO has finally shown signs that its price trend may be reversing. Although it is still too early to conclude that this is the beginning of LDO's value reassessment, the market has already seen some positive signals.