Staker chips are skyrocketing. Lido is up 150% in one month, the same amount of frax, while other protocols, such as the rocket pool, are also catching up.
But there's more to the story. The NWT also sees massive volumes for several weeks in a row, showing small signs of slowdown.
The question now is, how long will this positive trend continue – is it a deadlock or the beginning of a long-awaited recovery?
To help us crunch the numbers and interpret some of the on-chain data is Martin Lee – a Data Journalist from the popular cryptocurrency analytics firm Nansen.
Liquid marker parts trending upwards.
To help us with the calculations and the chain interpretation of some of the data, Martin Lee, a data reporter with the popular cryptocurrency analysis company Nansen, helped us.
To those unfamiliar with the concept, we have a comprehensive guide on Ethereum liquid staking.
Ethereum lsd, or components derived from liquid staking, were the warmest history from 2023 until now, with a large number of protocols that see a huge increase in locked value and, by extension, to those who do not understand the concept, we have a complete guide on fluid ether staking.
Rather than intervening directly in the contract for the filing of beacons, The lsd protocols allow users to snoop and receive a synthetic version—a new token, on its own – which can then be used in a variety of challenge applications to perform operations, farm, provide liquidity, and that kind of stuff. Speaking on the issue, Lee highlighted two major benefits which, in his view, are among the reasons why the story has become so strong. For example, h stressed that direct staking in the smart contract is "really inefficient in capital" due to a few elements.
Speaking on the issue, Lee highlighted two major benefits which, in his view, are among the reasons why the story has become so strong.
For example, he pointed out that the placement of EPF directly into the smart deal is "really inefficient in capital" because of a few elements. That is why the natural solution would be liquid sequencing. You receive a cash token in exchange for what you have put into play (in this case eth).
For instance, if you wager eth with lido, you get steth, which is completely liquid and you can interact with different challenge protocols.
Liquid staking solves both the illiquidity of milestones and the need for high capital to participate in staking. Native lsd protocol tokens, such as the lido ldo, for example, were recently launched.
Ldo itself is up by almost 150% over the past month, similar to other such protocols like the rocket pool and others. The catalyst for that seems to have been the recent announcement that the upgrade of ethereum shanghai will hit the public testnet in February and the main network in 2023. LDO itself is around 150% over the last month, similar to other protocols like Rocket Pool and others.
The catalyst seems to have been the recent announcement that the upgrade of Ethereum in Shanghai will strike the public testnet in February and the main network in 2023.
There appears to be a consensus that this would increase demand for alternatives to liquid staking, which is the dominant reason for their current popularity and rising valuations, He says that most of these tendencies generally slow down at the time of the event that caused them to emerge in the first place – in this case, upgrade from Shanghai. , the trend fades when the event itself occurs.
When the story dies out unavoidably, Lee says most of these trends tend to slow down on the date of the event that triggered them – in this case, upgrade from Shanghai.
, the tendency disappears at the time of the event itself.
On the merger date itself, people completely stopped talking about it.
NFT Volumes Including Pop.
As a matter of fact, on January 17, we had five consecutive weeks of high volumes.
Source: nansencommenting on the question, he says that this is more or less consistent with what we have seen in previous cycles. Then, NFTs kind of went on their own mini-run, with some projects doing better than others.
On that point, Lee mentioned that this is more or less what we've seen in previous cycles.