LDO and MKR Prices Decline Despite Strong Protocol Performance

Lido [LDO] and MakerDAO[MKR] have been the most dominant protocols in the DeFi sector. LDO and MKR remain afloat

DeFi protocols have been severely impacted by the recent market downturn. However, some protocols, such as Lido [LDO] and MakerDAO[MKR], have managed to remain afloat.

The performance of these protocols and the sentiment around their tokens have led to their prices being less affected by the market drawdown compared to other mid cap tokens over the last two weeks.

However, the performances of LDO and MKR took a bearish turn over the past 24 hours.

At press time, LDO was trading at $2.10 and its price had declined by 3.92% in the last 24 hours. Since the 16th of May, the price of LDO had surged by 38%.

This surge in price was significant, but a larger bullish or bearish trend was not established by LDO during this period.

The RSI (Relative Strength Index) for LDO fell materially over the last few days, which was indicative of bullish momentum around LDO waning.

Furthermore, the CMF (Chaikin Money Flow) for the token also decreased suggesting that the money flowing in was declining.

These factors suggest that, despite the positive performance showcased by LDO in the long run, it would still take some time for LDO to recover in the short term.

Source: Trading View

MKR, on the other hand faced more fury from the bears.

In the last 24 hours, the price of the token fell by 9.75%. However, this decline in price was part of a larger trend that began on 21st of May. During this period, the price of MKR showcased lower lows and lower highs, indicative of a bearish trend.

The RSI for MKR fell, implying that bullish momentum had waned. The CMF also decreased, indicating declining money flow.

Even though MKR wasn’t as affected by market drawdowns compared to other tokens, the future of the altcoin looks bearish.

Source: Trading View

Realistic or not, here’s LDO’s market cap in BTC’s terms

Divergence in holder behaviour

However, the network growth for MKR had witnessed a surge, implying that new addresses were showing interest in the token.

The same wasn’t the case for LDO, in the last few days, its network growth declined along with its price.

Source: Santiment