LDO price plummets amid Wintermute’s large-scale ETH withdrawals from Lido

Lido DAO (LDO) has been under the spotlight recently, not just for its role in the Ethereum staking ecosystem but also due to the significant market activities involving Wintermute, a leading market maker.

The LDO token, currently priced at $1.052, has experienced a turbulent period, reflecting broader market volatility and specific events that have raised concerns within the crypto community.

Wintermute’s huge ETH withdrawals from Lido

Wintermute’s recent large-scale withdrawals of unstaked ETH from Lido have captured widespread attention. On the back of its substantial market influence, Wintermute has redeemed over 30,000 ETH from Lido within just three days.

This includes a notable transaction on August 29, when Wintermute received 11,007 ETH, valued at approximately $27.27 million, from Lido. Shortly after, 5,501 ETH—worth around $13.8 million—was transferred to Coinbase, suggesting a potential sale.

Ai 姨 @ai_9684xtpa ·Follow

Wintermute 的 Lido 提款仍在继续💨 过去 9 小时 Wintermute 地址 0x13D…91F9F 累计从 Lido 处收到 11,007 枚解除质押的 ETH，价值 2727 万美金；随后将其中 5501 枚充值进了 #Coinbase，价值 1380 万美金 而近三天 Wintermute 已累计赎回 30,007 枚 ETH，并将 14,500 枚转移至交易所，疑似卖出

This isn’t an isolated incident. Just two days earlier, on August 27, Wintermute executed another significant transaction, withdrawing 19,000 ETH from Lido, valued at about $49.4 million, and subsequently transferring the ETH to Coinbase in batches.

Ai 姨 @ai_9684xtpa ·Follow

这是今天第二个大额提出 Lido 质押 ETH 并充值进交易所的机构了🚨 Wintermute 于过去半小时内收到从 Lido 解除质押的 19000 枚 ETH，价值约 4940 万美金，目前正在分批充值进 #Coinbase 截止目前已充值 8999 枚，预计还会继续🤔

Over these three days, Wintermute moved a total of 14,500 ETH to Coinbase, indicating a possible strategy to sell off a substantial portion of its ETH holdings.

LDO price has dropped by 35% in a month

While these large-scale transactions by Wintermute have raised concerns about the potential impact on ETH’s price, especially given the current market volatility, they have caused panic among Lido investors adding to the already bearish LDO market.

With LDO’s price fluctuating between $1.03 and $1.10 over the past 24 hours, the market has seen a 3.0% decline in LDO’s value within this period. Over the past seven days, LDO has dropped by 10.2%, and over the past 30 days, the decline has been even steeper at 35.8%.

Source: TradingView

The 9-Day and 21-day MA cross-over signal a continuation of the bear trend. If the price breaks below the $1 support level, traders should expect the token to plummet even further in September.

As institutional players like Wintermute continue to manage their significant ETH holdings, the crypto community remains vigilant, closely monitoring any further developments that could influence both the ETH and LDO markets.

Notably, the situation underscores the critical role of market makers and institutional investors in shaping the landscape of decentralized finance.

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