Lido DAO (LDO) has risen by about 75% from the last $0.16-$0.25 accumulation zone. However, market analysts see more potential for LDO after the activation of the NEST mechanism, which automatically purchases $LDO when the staking revenue hits the preset threshold. In addition, Lido DAO makes up a quarter of the entire DeFi industry.
Lido rises by 75% from accumulation zone near $0.16
Crypto analyst who goes by the pseudonym Crypto Patel stated that LDO has more potential to gain value even after it spiked 75% from the accumulation zone at $0.16-$0.25. Despite LDO still continuing the downtrend of making lower lows and lower highs, the analyst expects the token to still add value.
As such, Patel expects the token to hit $0.47 as its first target, then $1.50, $2.50, and $3.70, consequently, which, if it happens, will add on more than 2000%+ value to the token.
Lido Finance’s NEST mechanism could fuel another rally
The analyst’s prediction comes at a time when Lido Finance has activated its NEST mechanism. Lido’s NEST (Network Economic Support Tokenomics) is an on-chain mechanism designed to create a direct link between the performance of the Lido protocol and the value of its LDO token. The basic idea is that when Lido generates surplus revenue, a portion can automatically be used to buy LDO from the open market, subject to governance-approved rules and spending limits.
Lido’s surplus staking revenue is directed into NEST, which uses it to execute LDO purchases through CoW Swap. Under the proposed LP configuration, the purchased LDO is then paired with wstETH and deposited into a Curve liquidity pool, with the resulting liquidity owned by the DAO. NEST can also operate in treasury-only mode, where the purchased LDO goes directly to the DAO treasury.
For Lido, this could strengthen tokenomics and alignment. As protocol revenue grows, more capital can potentially flow toward LDO, creating a rule-based connection between Lido’s growth and the token. The DAO also gains additional LDO liquidity, while the mechanism reduces reliance on discretionary buyback decisions. However, NEST is not designed as a guaranteed price-support mechanism; LDO can still fall if broader market selling outweighs buyback demand.
Meanwhile, Lido Finance accounts for nearly a quarter of the total DeFi sector, with $18.1 billion in TVL out of the sector’s $75.33 billion total TVL.
