On October 31, the price of Lido DAO dropped by more than 10% to $1.05. However, there was some recovery shortly thereafter. This decline erased most of the recent increase, which rose from $0.99 on October 28 to $1.15 on October 30.

This decline in the crypto market occurred especially after the release of September data of the US Personal Consumption Expenditures (PCE) index.

The PCE index is an important economic indicator that affects investors’ inflation expectations. Therefore, after the announced data, there was uncertainty among investors, which triggered the sale.

While Bitcoin reacted negatively to the PCE index, Lido DAO’s decline was parallel to the declines in other altcoins. However, according to data from Spot On Chain, a whale’s sale of Lido DAO tokens was another factor that increased the downward pressure.

Whale was a wallet address that held the Lido DAO for three years, and on October 31, it decided to sell all its holdings.

Wallet address 0x9244 exchanged a total of 458,860 Lido DAO tokens. The total value of these tokens was $489,600, and he received 181.6 Ether in return.

This transaction took place at a time when the price of Ether dropped to $2,549, losing approximately 5% in value over a 24-hour period. This also points to the general volatility of the cryptocurrency market.

Despite the sell-off, the whale faced a huge loss as it had purchased Lido DAO tokens at an average price of $2.50. His total loss was estimated at approximately $900,000. Such large sales can have serious effects on the market and create panic among investors.

Lido DAO’s recent price drop caused holders to lose 41% in the last year. The token entered a downtrend after reaching $3.78 in January 2024. This may have shaken investors’ confidence in Lido DAO.

Data from IntoTheBlock shows that 91% of Lido DAO holders are losing money at current prices, while the remaining 9% are breaking even.

This may lead to more holders losing money if the price of Lido DAO drops further. The cryptocurrency market poses both great opportunities and serious risks for investors due to its volatility.

Especially recently, increasing inflation and market uncertainties have made investors more cautious.

Whether these negative effects on Lido DAO and other altcoins will continue will depend on market dynamics. Therefore, it is important for investors to be careful and follow market trends closely.