Golden Finance reported that according to Lookonchain’s monitoring, over the past month, multiple institutional wallets have been very active, deposing a total of 48.48 million Ldos into CEX through the wallet 0xC4Db. Based on the current price, the value is approximately 45.6 million US dollars. This series of changes in Capital flow has drawn widespread attention from the market. Nine hours ago, Paradigm Capital, a well-known institution in the crypto field, also joined in, transferring 10 million Ldos to 0xC4Db. Based on the current market situation, the value is estimated to be as high as 8.41 million US dollars. The market speculates that behind this move, it is highly likely to indicate that there will be more selling actions to come.
As a liquidity staking protocol that holds a significant position in the Ethereum ecosystem, Lido’s governance token LDO has always been a market focus. Through Lido, users can stake any amount of ETH and obtain stETH representing the staking rights. This not only solves the high threshold problem of 32 ETH required for staking on Ethereum but also keeps the staked assets liquid. Not only that, Lido’s business territory has expanded to other proof-of-stake blockchains such as Polygon, Solana, Polkadot and Kusama, providing investors with a richer and more diverse range of choices. In the entire DeFi ecosystem, Lido’s total value locked (TVL) amounts to as high as 27.524 billion US dollars, firmly holding the leading position.
Paradigm Capital is highly influential in the field of crypto investment. Its investment layout is extensive and in-depth, and it has played an important role in promoting the development trends of many crypto projects. Looking back, as early as May 2021, Paradigm Capital began to accumulate LDO tokens. Recently, this institution has been very active and has carried out several large-scale LDO transfer operations in the past few months. Not long ago, Paradigm Capital also transferred all of its 70 million LDO holdings through two transactions. Previously, on November 9, 2024, according to onchainlens data, Paradigm Capital transferred 11 million LDO to Coinbase, worth approximately 14 million US dollars. As of that time, a total of 26.11 million LDO had been transferred. The total value reached 32.83 million US dollars. Even so, at that time, it still held 43,878,190 Ldos, worth 55.91 million US dollars. Now, with another large-scale transfer of 10 million Ldos, the market has to speculate more about its subsequent plans.
Judging from the market reaction, the price trend of LDO has always been sensitive to large capital flows. In the past 24 hours, the price of LDO rose by 20.8%, hitting a 38-day high of $1.446, and the trading volume soared by 176.61% to as high as $305.5 million. However, in the current market environment, many investors are concerned that if Paradigm Capital’s shift to LDO this time triggers a large-scale sell-off, it is highly likely to disrupt the existing supply and demand balance in the LDO market, leading to significant price fluctuations. After all, in the cryptocurrency market, every move made by institutional investors often has a significant impact on market sentiment and triggers a chain reaction.
As for the reason why Paradigm Capital shifted to LDO, there are various opinions in the current market. Some analysts believe that it might be due to the need for portfolio adjustment that the institution hopes to recover funds by reducing its holdings in LDO and redirect them to other more promising crypto projects or asset classes. There are also viewpoints suggesting that this might be due to a change in expectations for the future development prospects of the Lido project. Although Lido is currently in a leading position in the industry, with the intensification of competition and the continuous emergence of new liquidity staking protocols, Paradigm Capital may have doubts about the long-term value of LDO. Another speculation is that changes in the institutions’ own capital demands, such as facing pressure to redeem funds, have prompted them to sell LDO to obtain liquidity.
In the current volatile cryptocurrency market, Paradigm Capital’s shift to LDO undoubtedly adds more variables to an already uncertain market. Investors and market participants are closely monitoring the subsequent developments. Whether it is the price trend of LDO or whether Paradigm Capital will further sell off, it will have a profound impact on the Solana ecosystem and the entire cryptocurrency market. Its subsequent movements are worth continuous tracking.
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