A wallet linked to DeFiance Capital deposited 9.3 million LDO, worth about $10.1 million, into major exchanges.

These include Binance, OKX, Bybit, and Gate.io within the last 48 hours. Such large-scale inflows often signal planned sell-offs, especially during price drops.

DeFiance Capital, a major crypto hedge fund, has reportedly been transferring large amounts of Lido DAO (LDO) tokens to leading cryptocurrency exchanges.

According to on-chain analytics firm Santiment, a wallet linked to the hedge fund deposited 9.3 million LDO, currently valued at $10.1 million, to Binance, OKX, Bybit, and Gate.io over the last 48 hours.

A tier-1 hedge fund known for its DeFi investments, DeFiance Capital, has been moving large amounts of

$LDO to major exchanges. In the last 48 hours, 9.3 million LDO tokens, valued at around $10.1 million, were deposited to Binance, OKX, Bybit, and Gate.io.

As shown above, the brightness of the on-chain activity has been steadily decreasing. At the moment, Daily Active Addresses are at 139, transaction count has dropped to 72, and a close-up shows a clear downward trend. As user engagement lessens, it typically leads to reduced organic demand for the token.

Moreover, network inactivity often coincides with price stagnation or correction. When large holders begin moving their tokens to exchanges amid weak participation, the result tends to be negative.

Furthermore, as shown in the chart, Price DAA Divergence stands at -6.55%, which signifies that the recent price action lacked strength from users. In most cases, price increases that outpace user growth do not last for long periods. This gap indicates an unstable rally. When the price climbs without support from users, the risk of correction increases sharply. Unless participation rises, price will likely retreat again.

Finally, as shown below, the MVRV Z-Score stands at -0.133, highlighting a mild undervaluation. This score indicates that LDO holders are close to the point where they broke even on their initial investment. However, the signal does not yet show strong accumulation pressure. In previous cycles, deeper MVRV lows often triggered significant price rebounds.

At the moment, buyers seem hesitant, and the level is neutral, suggesting that a reversal is not yet in sight. This keeps LDO vulnerable to further downside. For recovery to build, we’ll need to see stronger signals of undervaluation in market metrics. Right now, the incentive to buy is not yet strong enough.

Derivatives metrics show caution as buyers are hesitant

As of Monday morning, LDO’s MVRV Z-Score stands at -0.133, suggesting a mild undervaluation and hinting that most LDO holders are close to breaking even on their investment. However, the signal does not yet show strong accumulation pressure, as deeper MVRV lows usually sparked noteworthy rallies from oversold levels.

Moreover, LDO’s derivatives market is displaying a lackluster performance. Compared to Sunday morning, LDO’s trading volume has decreased by 24.22%, now at $172.36 million. Additionally, Open Interest has slipped by 9.79%, settling at $129.93 million.

These steep reductions indicate that traders are actively closing their positions and displaying a strong aversion to initiating new ones. Such behavior typically stifles volatility and limits the potential for upward momentum, especially when considering that derivatives traders are largely responsible for amplifying price trends with leverage.

However, the lack of derivatives activity often follows bearish price trends, suggesting that traders may be becoming increasingly cautious due to concerns about further downside potential.