Following Ethereum [ETH] whales’ interest in the token, Lido Finance [LDO] saw a 7.88% price increase over the past day. LDO was one of the smart contract tokens that the top 5000 investors in this group used the most during the same period, according to WhaleStats.
The increase in value, however, might not be sufficient to draw the conclusion that LDO reacted favorably to the development. That can be sufficient for those who are interested in quick profits. However, the LDO on-chain condition revealed opposing viewpoints.
Excitation shouldn’t make mistakes disappear.
Santiment demonstrated that price increases infrequently affected the gains registered, so there were reasons to maintain caution. This was the case, as indicated by the Market Value to Realized Value (MVRV) ratio, particularly for long-term token holders.
The seven-day to 365-day MVRV ratio maintained negative values all around, according to the on-chain portal. The 365-day ratio was -37.80%, and the seven-day MVRV ratio was -9.859% at the time of publication.
As a result, LDO was worth more when purchased on average than it is now. As a result, investors had hardly turned a profit and were still hesitant to sell. Furthermore, since LDO may be viewed as being undervalued, a market correction was unlikely to occur.
The typical investor maintained their zeal despite the inconsistent behavior displayed by LDO. The negative sentiment was 0.459 according to Santiment’s data.
However, because the values were close and a 0.75 value could not completely sway public opinion, many LDO investors continued to exercise caution.
Lido Finance: In terms of social issues
Santiment characterized Lido’s social metrics as being “bland and bad” at 0.009%. Additionally, this circumstance meant that LDO received little attention even after the price increase and might turn the uptrend around.
Santiment indicated that its social volume was at a value of 1, which indicated that it was also full of flaws. LDO thus faced the possibility of losing the most recent upturn.