Lido’s Major Upgrade Fails to Lift LDO: Why Can’t It Break the $1 Barrier?

BTCC / BTCC Square / 99bitcoinsEN /

Author:

99bitcoinsEN

Published:

2025-06-27 10:31:10

Lido's latest updates promised a leap forward—so why is LDO still trading like a stablecoin stuck in molasses?

The Bull Case Crumbles

Despite shipping protocol improvements that should've been rocket fuel, LDO's price action resembles a sleepy altcoin from 2021. The token can't seem to escape its sub-$1 purgatory, even as Ethereum staking demand hits record highs.

Institutional Yawns

Market makers appear unmoved by Lido's tech upgrades—perhaps too busy chasing the next shiny AI token. The staking giant now faces the crypto market's ultimate test: can utility overcome trader apathy?

The Cynic's Take

Another day, another 'game-changing' crypto update that changes absolutely nothing about the price chart. Maybe LDO needs less engineering and more financial engineering—where's the buyback program when you need it?

LDO Crypto Tumbles, Down 90% From 2021 Highs

With DeFi driving the market in the last bull run from 2020 to 2021, Lido prices spiked to as high as $7.30. However, recent performance shows that LDO ▼-0.07% may take years to retest this key level.

Currently, LDO crypto is trading below $1, ranging between $0.68 and $0.72 in the past 24 hours. Presently, the LDO price is down 90% from all-time highs, trailing some of the best Solana meme coins.

Surprisingly, early adopters are still up 70% from the all-time low of $0.40 posted three years ago, per Coingecko data.

From the LDOUSDT daily chart, LDO is more likely to break below April 2025 lows than surpass $1.16 and the May 2025 local resistance. Prices have been steadily declining in recent days after an impressive spike in May 2025.

Lido DAO TokenPriceMarket CapLDO$623.26M24h7d30d1yAll time

The pace of recovery will ultimately depend on how Ethereum performs. As one of the largest DeFi protocols on Ethereum, managing over $22.3 billion in total value locked (TVL), ETH directly impacts LDO prices.

LDO crypto is stuck below $1. Lido Finance has been shipping major updates, including the release of v3 in testnet-2

If ETH overcomes its recent weakness, surging above $2,800 and $3,000, some of the best cryptos to buy, including LDO, could turn around, rewarding patient HODLers.

Lido Building: v3 in Testnet as CSM Boosts Decentralization

The speed of this recovery, which could lift LDO from its discouraging downward spiral, depends on how quickly their innovations gain traction, further helping the protocol lock in more ETH.

Yesterday, Lido developers unveiled Lido v3 testnet-2 on the Hoodi Ethereum testnet. While still in development, the release, once live on the Ethereum mainnet, will introduce an upgraded version of their stVaults system.

Lido V3 Testnet-2 is live.

Contracts, a modified web UI, and CLI are fully synced and ready for action.https://t.co/rJ3qSuuaA6

This marks a major milestone on the path to customizable, modular Ethereum staking.

↓ pic.twitter.com/E1LeViGX1U

— Lido (@LidoFinance) June 25, 2025

These are modular autonomous vaults that will enable other Ethereum protocols and institutions to build custom staking products, such as Leveraged staking and over-collateralized security pools.

Additionally, developers are testing CLI enhancements to improve tooling for developers. Once live, these enhancements will allow developers to onboard users more easily within a robust staking app development environment.

Earlier, the Lido development team upgraded their Community Staking Module (CSM), making it permissionless. The primary goal was to enhance decentralization, allowing anyone to run Lido validators with minimal capital requirements.

To connect to the CSM, node validators need at least 1.5 ETH. Since its release, there were over 500 node operators as of February 2025.

CSM v2 Features – Part 2: Variable Node Operator reward share

Unlike v1’s flat reward share, v2 introduces a differentiated reward structure based on Node Operator type and the number of active validators.

pic.twitter.com/AuAt0Q3oYd