Institutional Sell-Off Continues to Weigh on Lido DAO ($LDO) Token Price

In the last month, there has been intensifying selling pressure on $LDO, the native token of Lido DAO . Most of this pressure has come from large institutional holders who have been on a sustained sell-off. Prominent investment firm Paradigm Capital has made some recent transactions that have brought further attention to this ongoing trend. On-chain data related to these transactions show that they have been moving a large amount of $LDO into exchange-linked wallets. The net effect of these concerted actions has been that $LDO has dropped 22% in value in just the last 30 days. Paradigm Capital Moves $8.4 Million in $LDO to Exchange Wallet Analysts working on the blockchain saw that just nine hours ago, Paradigm Capital shifted 10 million $LDO tokens—worth around $8.41 million—into the wallet address 0xC4Db, which is thought to be a front for a trading platform. This particular address has served as a funnel for several institutional wallets to route their LDO tokens to trading platforms. Given where the funds just went to, and given that this is the first use of the address reported by on-chain analysts, there isn’t good reason to think this is anything other than a trading platform in disguise. Interest has been piqued by Paradigm’s most recent transaction, as it hints at the firm potentially liquidating a fresh batch of its holdings. This wouldn’t be the first time Paradigm has seen gains from divesting a portion of its early investments. In 2020, Paradigm purchased 70 million $LDO tokens directly from Lido’s treasury at a considerable discount of just $0.76 per token. That set in motion a total investment of roughly $53.2 million. What we don’t know for certain is if, in the current timeframe, Paradigm is selling just what they bought in 2020 or if it’s in part selling what they’ve bought lately. In either case, it’s not looking good for Lido. In November last year, the firm sold off 50 million of those tokens at an average price of $1.31, bringing in a profit of around $27.5 million. With yesterday’s transfer of 10 million tokens to an unknown wallet, it appears Paradigm might be preparing to sell off half of its 20 million LDO tokens left in reserve—potentially continuing the wave of institutional selling that has affected LDO’s price trajectory. Alternately, LDO could also have been a donation to a charitable cause. Exchange-Linked Wallet Activity Signals Broader Institutional Exit Paradigm is not the only one. In the last month, a number of institutional wallets have moved a total of 48.48 million $LDO tokens—valued at about $45.6 million during the transfers—to various exchanges using the wallet 0xC4Db. Such concentrated movement into exchange addresses is generally interpreted as an intent to sell, rather than a repositioning of assets or a custodial move. 这机构的 $LDO 跟出不完似的，一个接一个。这最近一个月才有一个机构 (或团队) 出了 $5131 万枚 LDO ($48.66M)。 现在 Paradigm Capital 也要出：Paradigm Capital 地址在 7 小时前转出 1000 万枚 $LDO ($8.41M)，预计这些 LDO 也会在接下来被转进 Binance、OKX、Bybit、Gate。 Paradigm 是在 4… https://t.co/xSPsS7g47K pic.twitter.com/kb4XH8jZZu — 余烬 (@EmberCN) June 10, 2025 Although the specific names of the institutions associated with these extra transfers have not been completely revealed, the overall amount involved is large and gives more to an investigation’s concern. Retail investors and analysts have a burning sensation where these sell-off transfers touch on the ever-elusive trust factor. And eroded trust results in a very bad market sentiment. Price Performance and Market Outloo k The fallout from this selling spree is already clear in LDO’s market performance. The token has shed 22% of its value over the past month, while many other assets in the decentralized finance (DeFi) sector have rallied. For a project that once stood at the very forefront of Ethereum staking infrastructure, this kind of downward momentum reflects awfully on liquidity, investor confidence, and possibly long-term institutional commitment. Lido DAO’s influence in the Ethereum atmosphere does stay present, especially for a company that has piped so far in the diluted staking department. But what’s going on with Lido? Well, Paradigm has started to dump; and with that, the questions have started to surface again about Lido’s prospects, governance, and the trajectory it’s on as an Ethereum development shop. In the next days and weeks, market participants will be watching wallet 0xC4Db to see what it does next. If Paradigm is indeed continuing to liquidate its last stake, or if other institutions do likewise, $LDO holders could be in for further downside. Currently, retail investors and the wider DeFi community are coming to terms with the implications of this institutional reshuffling and are left wondering whether Lido DAO can get through this storm without experiencing any further downturns. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news !

Source: NullTx