LDO price plummets amid Wintermutes 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.

Wintermutes huge ETH withdrawals from Lido

Wintermutes 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.

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 ETHs 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.