Ethereum staking
Ethereum Ecosystem Altcoin Jumps in Price After Coinbase Ventures Invests in the Project
An Ethereum (ETH) ecosystem altcoin saw a price jump on Thursday after Coinbase’s venture capital arm announced a strategic investment. Coinbase Ventures announced on Thursday that it is investing in Rocket Pool (RPL), a decentralized Ethereum staking pool intended to lower capital and hardware needs to stake on ETH 2.0. “Exciting news to share: Coinbase […]
The post Ethereum Ecosystem Altcoin Jumps in Price After Coinbase Ventures Invests in the Project appeared first on The Daily Hodl.
Sell or stake: Ethereum staking giant Lido mulls choices for its $30M ETH
While LidoDAO’s current inflows of about 1000 stETH are sufficient to cover operating costs for the time being, it’s worried that may not last.
The decentralized autonomous organization (DAO) behind Lido — the largest Ethereum staking pool — is deliberating whether it should sell or stake the $30 million in Ether (ETH) from its treasury.
A proposal was submitted on Feb. 14 by the DAO’s financial unit, Steakhouse Financial that considers four choices, one of which contemplates staking part or all of its ETH on Lido in the form of Lido Staked ETH (stETH).
Another would see LidoDAO selling a part or all of its 20,304 ETH for a stablecoin, with the purpose being to extend the DAO’s runway.
The proposal comes as ETH staking withdrawals will soon be enabled through Ethereum’s Shanghai and Capella upgrades expected to take place sometime in earl 2023 according to the Ethereum Foundation.
While converting the ETH to Staked ETH may lead to more protocol rewards, the DAO is wary that too much staking may risk it not having enough Ether on hand “in case of need.”
Regarding operating expenses, Steakhouse Financial suggested it may be necessary to swap Ether for a stablecoin in order to “preemptively secure additional runway.”
Steakhouse Financial noted that with LidoDAO’s current inflows at about 1000 stETH per month, the DAO is making approximately $1.3 million to 1.5 million per month with the price of ETH hovering between $1,100 and 1,700 over the past few months.
Steakhouse Financial said those figures alone should be “sufficient to cover monthly operating expenses.”
However, they’re still deliberating whether it is worth converting excess stETH into a stablecoin to better prepare for any change in market conditions that may lead to increased operating expenses.
A business development representative from LidoDAO noted that they’re not particularly thrilled with the current state of the stablecoin market:
“Considering all the FUD and rumors, both DAI due to USDC collateral and USDC itself pose potential risk if they become frozen. That being said I have issues with the liquidity of LUSD and USDT has yet its own issues.”
It appears as though most LidoDAO members are in favor of partially selling and staking a portion of the 20,304 ETH locked in its Aragon smart contract.
Related: Lido overtakes MakerDAO and now has the highest TVL in DeFi
The proposals come as the total value locked (TVL) of stETH fell 6.66% between Feb. 6-13.
Lido Analytics: Feb 06 - 13, 2023
— Lido (@LidoFinance) February 13, 2023
TLDR:
- Lido TVL is down -6.66%, following a -7.22% fall in the price of ETH.
- Lido led in new stake on Ethereum, with a 27% share in weekly deposits.
- New @AaveAave V3 wstETH: 34,726 (+34.87%).
- Lido on Polygon reaches 2% market share. pic.twitter.com/iWA9YccM6e
The TVL of Lido is currently $8.13 billion, according to the on-chain metrics platform DeFiLlama.
Ethereum Liquid Staking Trend Continues to Swell; 5 Platforms Control 97% of Market
As of Feb. 7, 2023, the value locked in 11 Ethereum-based liquid staking protocols has risen above $11 billion, with Lido, Coinbase, and Rocket Pool recording 4-10% gains over the past month. Lido holds more than 73% of the total value locked (TVL) out of the 6.87 million ether held by the 11 liquid staking […]Metamask Launches Ethereum Staking Services via Lido and Rocketpool
On Friday, the Web3 wallet firm Metamask, a subsidiary of the Ethereum-centric company Consensys, announced the beta launch of ethereum staking features will be made available via Lido’s or Rocketpool’s liquid staking services. Users who want to stake ethereum and earn staking rewards can select one of the staking providers within the Metamask Web3 wallet’s […]Selling the rumor? Biggest Ethereum Merge staker Lido DAO loses 40% in 30 days
LDO price faces downside risks from "sell-the-news" sentiment coupled with a bearish technical setup.
Lido DAO (LDO) has declined by more than 40% in the last 30 days with more room to fall in the coming days amid a potential sell-the-news event, i.e. the Merge.
Lido DAO Ether deposits surge 160% in 2022
Lido DAO is Ethereum's biggest staking service, having deposited over 4.14 million of the blockchain's native asset, Ether (ETH), into the Ethereum 2.0 smart contract on behalf of its users, according to the latest data.
In comparison, Lido DAO's total staked amount was around 1.6 million ETH at the beginning of this year. The boom reflects a growing demand for Lido DAO services ahead of Ethereum's scheduled transition from proof-of-work to proof-of-stake via the Merge on Sep. 15.
LDO, a governance token in the Lido DAO ecosystem, has also undergone an unprecedented price rally in recent months, up more than 350% after bottoming out at $0.39 in June.
Still, the token's sharp correction in the past month raises the possibility of an extended downtrend now that the pre-Merge hype is nearing its end. In addition, a technical setup also alerts about a potential price decline ahe.
LDO hints at descending triangle reversal
The latest selling period in the Lido DAO market started after LDO topped at $3.10 on Aug. 13. This downtrend has painted a pattern that appears to be a descending triangle.
Descending triangles that form at the top suggest bullish exhaustion. Theoretically, a descending triangle breakdown below the lower trendline—could crash the price to the level at length equal to the maximum triangle height.
Related: Will the Ethereum Merge crash or revive the crypto market? | Find out now on The Market Report
LDO now tests the triangle's lower trendline area (~$1.79-$1.82) as support. The token could drop toward $1.17 if it breaks below the support level while accompanying a rise in trading volumes. In other words, a 35% drop from current price levels.
Conversely, a rebound from the $1.79-182 support area could have LDO test the descending triangle's upper trendline at around $2.10 as resistance.
Also, a decisive breakout above the upper trendline would risk invalidating the bearish setup discussed above.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Crypto Trader Predicts Over 60% Crash for One Ethereum-Based Altcoin, Unveils Outlook for Bitcoin and Cardano
A widely followed crypto trader is expressing bearish sentiment toward one Ethereum-based altcoin while revealing his forecast for Bitcoin (BTC) and Cardano (ADA). The pseudonymous crypto analyst known as Altcoin Sherpa tells his 182,400 Twitter followers that the native token of Lido DAO (LDO), the decentralized autonomous organization (DAO) behind the Lido Ethereum staking protocol, […]
The post Crypto Trader Predicts Over 60% Crash for One Ethereum-Based Altcoin, Unveils Outlook for Bitcoin and Cardano appeared first on The Daily Hodl.
LUNA flips Ethereum becoming second largest network for staked value
Data shows that there are currently 226,325 stakers accounting for $29.5 billion worth of locked up LUNA which has propelled the network into second place for staked value.
According to data from Staking Rewards, Terra (LUNA) has flipped Ethereum (ETH) in terms of staked value, with $29.5 billion worth of LUNA locked up compared to Ether’s $25.9 billion.
The platform’s data shows that there are currently 226,325 LUNA stakers, making it the second most staked crypto asset with more than four times the number of those staking ETH at 54,768. Solana leads the staking charts with $35 billion in staked value.
In terms of annual staking rewards, LUNA is estimated to yield 6.62% on average while Ethereum fetches 4.81%. The most rewarding out of the top 10 staked assets is Polkadot (DOT) with 13.92%.
Staking Rewards highlighted the flippening on March 1, noting that LUNA staking had overtaken Ethereum, however, some users pointed out that data from DeFi Llama appears to contradict the figures dramatically.
DeFi lama suggests different data pic.twitter.com/lGbZ1lXefy
— Luna Studio.UST (@Luna_Studio_) March 2, 2022
DeFi Llama’s data shows that Ethereum towers over its competitors in terms of a total value locked (TVL) of $111.4 billion, compared to LUNA’s TVL of $23.35 billion. However, these figures incorporate collateral locked across DeFi protocols, not just ETH staked on the Beacon Chain, hence the discrepancy. The Beaconcha.in explorer currently reports 9.7 million ETH staked worth around $26.5 billion at current prices which is similar to Staking Rewards figures.
One trend that both data aggregators have confirmed, however, is that interest in LUNA has surged of late. Over the past seven days, LUNA’s TVL has increased 26.905% and sits well above third-placed Binance Smart Chain (BSC) at $12.03 billion worth of TVL.
Staking Rewards clarified that staked value and TVL metrics are “entirely different,” as the latter can also incorporate assets locked in decentralized finance (DeFi) protocols for features such as lending.
The price of LUNA has gained a whopping 78.4% over the past 30 days to sit at roughly $92.84 at the time of writing, while its market cap currently totals $34.5 billion.
Related: Rune’s upcoming mainnet launch and Terra (LUNA) integration set off a 74% rally
As previously reported by Cointelegraph, the asset's bullish recovery comes off the back of the Terra protocol burning 29 million LUNA tokens worth ($2.57 billion) late last month. The move coincided with the supply of TerraUSD (UST) — a stablecoin backed by LUNA — increased more than 14.5% to 12.92 million tokens.
ETH 2.0 Contract Surpasses 9 Million Ethereum Worth $28 Billion
The number of ether locked in the Ethereum 2.0 contract has exceeded 9 million ethereum or more than $28 billion using today’s exchange rates. The amount of ethereum locked into the contract has increased 22.29% since the first week of September 2021, when the contract held 7.4 million ether. Ethereum 2.0 Contract Exceeds 9 Million […]Ethereum eyes rally against Bitcoin, with ETH price showing hidden bullish divergence
The second-largest cryptocurrency will see over 8% growth against its top rival should the technical outlook play out.
Ethereum’s native token, Ether (ETH), has been declining against its top crypto rival, Bitcoin (BTC), since Sept. 3.
Ether dropped in value against Bitcoin by almost 25% after topping out in September at 0.07955 BTC. As the top altcoin declined, it left behind a trail of lower highs and lower lows, thus forming an ascending channel.
Later, ETH/BTC broke the channel to the upside on Saturday, raising anticipations about a strong extended recovery trend. But a selloff on Sunday and the ongoing session had traders test the channel’s resistance trendline as support.
ETH price charts suggest bullish divergence
The sentiment raised Ether’s possibility to reenter the falling range as shown in the chart below.
At the same time, the formation of higher highs in ETH/BTC’s daily commodity channel index (CCI) showed hidden divergence against the pair’s downtrend. For the uninitiated, CCI is a momentum oscillator that measures an instrument’s variations from its statistical mean to spot potential reversals.
“A hidden divergence is always an indicator for a possible trend reversal,” noted Stefan Krecher, a Germany-based market strategist, adding that ETH/BTC may rebound in the coming sessions also as the pair’s daily relative strength index (RSI) remains “not overbought.”
Krecher anticipated Ether to hit its monthly pivot point around 0.071586 BTC, almost over 8% of the current levels. The upside target also coincided with the 0.618 Fib line (0.071505 BTC) of the Fibonacci retracement graph in the chart above.
On the flip side, reentering the descending channel range risked sending ETH/BTC to its range support trendline near 0.058238 BTC.
Ether price against the dollar
The bullish ETH/BTC price outlook appeared as Ether held $4,000 as solid support while rebounding over 2.6% Monday. Meanwhile, Bitcoin’s price retraced almost 3.5% after setting up a similarly strong price floor near $60,000.
As a result, ETH/BTC merely looked weaker because Bitcoin rallied strongly against the United States dollar than Ether. Nevertheless, the Ethereum token’s prospects looked bullish, as earlier reported by Cointelegraph, with the aid of an ascending triangle setup shown below.
Ether broke out of the pattern on the daily timeframe but with little trading volume, showing weakness in the price trend.
The cryptocurrency now tests the triangle’s upper trendline as support for bullish confirmation. Should a rebound follow suit, the price could eye new record highs above $4,384, with the triangle setup’s target sitting near $6,500.
ETH supply crunch
Additionally, the supply of Ether tokens has been declining after the Ethereum network’s London hard fork. Namely, the Ethereum Improvement Proposal 1559, which went live with the update, started burning ETH that it previously paid to miners.
Data collected from WatchTheBurn shows that the Ethereum network has destroyed almost $2.25 billion worth of Ether tokens since the London hard fork’s launch.
Related: Altcoins breakout even as Bitcoin price falls to $60,000
Additionally, the Ethereum 2.0 deposit contract has attracted more than 8 million ETH, thereby removing them from circulation for at least a year.
Moreover, regulated funds have increased their Ether holdings from 2.43 million ETH in November 2020 to 4.08 million ETH today, signifying increasing institutional demand.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.