Lido (LDO)’s short-term position continues to falter in the face of a market-wide correction phase, dragging the altcoin market into the mud. As of writing, the token has lost more than 20% of its value, representing a major shift in investor sentiment. The market wasn’t doing much better as it lost about 2% of its value, wiping almost $800 million off the market in the last 24 hours.
Lido’s development continues despite the bearish outlook on the market, the latest of which may drive sales interest in the top platform. However, as the market acts as a chaotic backdrop for LDO, it may come in behind the expectations of investors and traders.
Lido DAO Announces Public Pre-IPO Program
Yesterday, October 5, Lido’s official X account announced the Community Early Access Program (CSM) specially designed for participants who want to taste the CSM environment before its initial launch.
Introducing the Community Staking Module Pre-Adoption Program: A Unique Opportunity for Solo Stakers
Eligible operators can benefit from: 1⃣ Early access to the CSM mainnet, avoiding competition from large companies involved in ETH shares. 2⃣ Reduced need for… pic.twitter.com/x6N8oINq9l
— Lido (@LidoFinance) October 4, 2024
According to X’s post, eligible parties can enjoy early access to the CSM mainnet, a reduced capital requirement from 32 ETH to just 1.5 ETH, and a maximum reward of 2.37x per ETH.
In addition to these benefits, eligible operators are also allowed to use 12 validators. According to Lido’s blog post, the restriction will be lifted only after the first stage of acquisition.
To ensure that only those who are interested will have the opportunity to enter the program, Lido has issued certain screening rules that will check each applicant’s suitability for the program.
This development will ultimately stimulate commercial interest in the platform as it lowers the economic barrier to participating in the network. However, its strict rules regarding the eligibility of members of the public and network users to be part of the CSM Early Adoption Program prevent any potential benefit in the long run of the network as only a few users can participate in the reduced financial burden brought about by the program.
$0.88-$1.13 Range Holds Little Promise for LDO
As of writing, the token is struggling to hold the weight of the bearish pressure that has taken the market by storm. LDO bulls do not have the same momentum as bears which may lead to a short to medium term continuation of the downward trend.
The relative strength indicator of the token, however, points to a possible reversal in the medium term which could lead LDO to maintain its current trading range in the next few days.
Investors and traders should monitor broader market movements in the coming days as LDO’s correlation with major cryptocurrencies will play a major role in its future price movements.
Featured image from Pexels, chart from TradingView