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Ethereum is about to undergo a major upgrade to release staked ETH from the Beacon Chain. This could be good news for liquid staking rigs like lido.
Ethereum staking has been hugely popular despite the crypto bear market. In addition, the value of the assets involved continues to rise despite falling prices. This reflects the long-term confidence of many equity investors.
Developers have slated March for the next major network upgrade — Shanghai. This will introduce a proposal to improve the etheum () 4895, which frees up the milestones for removals.
According to experts, improving and releasing anything that might benefit liquid staking platforms.
A new narrative is emerging in
The upcoming Ethereum upgrade will have a huge impact on liquid staking protocols.
Here's why I think liquid staking is an increasing trend, and some jewels to take advantage of this opportunity? pic.twitter.com/CgcxizkyRW
— A challenging investor??? (@TheDeFinvestor) January 4, 2023
Advantages of liquefied ether staking.
Cash Staking or "Flexible Staking" is the process of securing funds for rewards while accessing these funds. Unlike direct staking on the tag line, liquid funds can always be withdrawn at any time. In addition, direct staking requires a significant investment of 32 eth (approximately $40,000), while liquid staking can be anything.
There are something like 16 million right now. But staking could become a lot more attractive when people can take it off when they want.
Investors looking to stake ETH after the Shanghai upgrade will most likely select a liquid staking option, according to ‘The DeFi Investor.’
“After withdrawing staked ETH becomes available, the revenue of liquid staking providers will likely take off.”
Liquid staking derivatives can also be used across without giving up the staking yield. The lido is an excellent example with its palisage and ldo chip, both capitulating. However, Lido does take a 10% cut of the staking rewards, which is sent to its
Rocket Pool is another leading staking provider that prioritizes decentralization and offers better returns. Others include issue-based finance and frax, two fast-growing fields.
Stader labs also plans to launch a liquid ethereum staking derivative in the first trimester, and more could follow.
In recent weeks, we have seen a strong narrative form around eth lsd (derived from liquid staking). As an onchain degen, I've taken some time looking for alternative LSD plays might have high ceiling, let's take a look@staderlabs
?????? pic.twitter.com/zS7rlifOFT
— rektGEMS?? (@AvaxGems) January 4, 2023
Significant growth anticipated.
With the advantages of clear cash staking, platforms like these (and their associated chips) are likely to grow this year. The lido dao token () was recently one of the most successful crypto assets, with a 43% gain in the past week.
In addition, not all benchmarks will be available at the same time. Current specifications allow a maximum of 57,600 partial withdrawals per day, according to CoinMetrics. He added that large sequencing operators such as exchanges could also pool rewards to boost validators.
