LDO price turns bearish as Lido’s unfinalized withdrawals hit all-time high

Digital currencies displayed mixed performances on Wednesday as the market remained relatively calm in the past 24 hours.

While Binance Coin led the gainers with a new ATH, Lido DAO’s native token exhibited a bearish outlook.

LDO lost more than 5% of its value the previous day as Lido faces growing liquidity pressure amid skyrocketing unfinalized withdrawals.

Dune Analytics data shows unfinalized withdrawal queue on the Ethereum-based liquid staking protocol soared to 235,728 on July 22, after consistent surges over the past few weeks.

Source – Dune Analytics

That represents the highest withdrawal jam since Lido first introduced withdrawals, excluding the initial day’s spike.

These observations signal a change in user behavior.

The lengthening queue indicates more stakers requesting to exit the Lido network at the same time.

Meanwhile, these spikes can face prolonged delays as staked ETH withdrawals depend on Ethereum’s exit rate caps and validator rotation.

That raises worries over Lido DAO’s ability to maintain steady liquidity in the upcoming times.

The protocol’s native coin turned bearish as the project braced for a potential liquidity crunch.

While most digital assets displayed stability amid market cooldown, LDO dropped 5.78% from $1.2195 to $1.149.

Lido’s liquidity strain concerns

A massive withdrawal queue means individuals will wait longer to access their Ether tokens, and that paints a negative picture for a platform that promises liquid staking.

User trust deteriorates with such disappointments. It also pressures the secondary markets.

Users failing to cash out directly from Lido DAO may switch to DeFi platforms or exchanges to liquidate their stETH (staked ETH).

That would mean intensified bearish pressure for stETH and the native LDO.

Various reasons could be contributing to Lido’s user exit. For instance, plummeting yields might offset conservative investors.

Individuals may be migrating to emerging platforms promising swift withdrawals and decentralized validator systems.

Furthermore, crypto investors could be exiting Lido for other platforms that promise lucrative opportunities and returns in this bull cycle.

The speed and magnitude of Lido’s withdrawal queue signals a significant shift in how and where users stake.

As a solution, the liquid staking platform has introduced Jumper Exchange as the new withdrawal aggregator to enable instant swaps.

Lido

@LidoFinance

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Introducing the newest Lido withdrawal aggregator: @JumperExchange ⚡ Skip the Ethereum withdrawal queues with instant swaps between stETH/wstETH and ETH using Jumper Exchange. 👇

8:04 PM · Jul 22, 2025

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LDO price outlook

Lido’s native token trades at $1.15 with declining daily trading volumes confirming bearish sentiments.

While clogged withdrawals trigger the downward pressure, profit-taking likely plays a part, especially since LDO gained 30% in the past week.

Technical indicators highlight LDO’s weakening momentum.

The Moving Average Convergence Divergence signals seller dominance with a sharp bearish crossover on the 3H timeframe.

Also, the 1D Relative Strength Index demonstrates overbought conditions at 70.

Such sentiments position LDO for short-term declines before the alt establishes a directional bias.

Failure to hold above $1.00 could see the alt plummeting towards the $0.80 barrier.

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