Ether Locked in Liquid Staking Platforms Skyrockets to $54.34B With a $26.85B Rise in 64 Days

March 10, 2024 Bitcoin.com

Vitalik Buterin voices concerns over DAOs approving ETH staking pool operators

October 1, 2023 Coin Telegraph

The Ethereum co-founder proposes a solution that could lower the likelihood of any individual liquid staking provider growing to a point where it poses a systemic risk.

Vitalik Buterin, the co-founder of Ethereum, has expressed worries regarding decentralized autonomous organizations (DAOs) exerting a monopoly over the selection of node operators in liquidity staking pools.

In a September 30 blog post, Buterin issues a warning that as staking pools adopt the DAO approach for governance over node operators—who are ultimately responsible for the pool's funds—it can expose them to potential risks from malicious actors.

“With the DAO approach, if a single such staking token dominates, that leads to a single, potentially attackable governance gadget controlling a very large portion of all Ethereum validators.”

Buterin highlights the liquid staking provider Lido (LDO) as an example with a DAO that validates node operators. However, he emphasizes that relying on just one layer of protection may prove insufficient:

“To the credit of protocols like Lido, they have implemented safeguards against this, but one layer of defense may not be enough,” he noted.

*ETH staked by category chart. Source: Vitalik Buterin*

Meanwhile, he explains that Rocket Pool offers the opportunity for anyone to become a node operator by placing an 8 Ether (ETH) deposit, which, at the time of this publication, is equivalent to approximately $13,406.

However, he notes this comes with its risks. "The Rocket Pool approach allows attackers to 51% attack the network, and force users to pay most of the costs," he stated.

On the other hand, Buterin emphasizes that each one must incorporate a mechanism for determining who can serve as the underlying node operators:

"It can't be unrestricted, because then attackers would join and amplify their attacks with users' funds."

Buterin highlights that a possible approach to address this issue involves encouraging ecosystem participants to utilize a variety of liquid staking providers.

He clarifies this would decrease the likelihood of any one provider becoming excessively large and posing a systemic risk.

“In the longer term, however, this is an unstable equilibrium, and there is peril in relying too much on moralistic pressure to solve problems," he stated.

Magazine: Are DAOs overhyped and unworkable? Lessons from the front lines

Ethereum staking services agree to 22% limit of all validators

September 1, 2023 Coin Telegraph

Centralization

The 22% self-limit rule ensures at least four major staking entities would need to collude in order for the chain to reach finalization.

At least five Ethereum liquid staking providers have either imposed or are working to impose a self-limit rule in which they promise not to own more than 22% of the Ethereum staking market — seen as a move to ensure the Ethereum network remains decentralized.

Among the Ethereum staking providers either already committed or are working to commit to the self-limit rule include Rocket Pool, StakeWise, Stader Labs and Diva Staking, according to Ethereum core developer Superphiz.

Puffer Finance, another liquid staking service, also announced its commitment to the self-limit.

These providers are committed (or are in the process of committing) to self-limit to @Rocket_Pool @stakewise_io @staderlabs @divastaking
— superphiz.eth ️ (@superphiz) August 30, 2023

The proposal presumably aims to address concerns of Ethereum staking becoming increasingly centralized.

As to why the self-limit was proposed at 22%, Superphiz explained that because 66% of validators need to agree on the state of Ethereum, setting the limit below 22% means at least four major entities must collude in order for the chain to reach finalization.

Finality is the point where transactions on a blockchain are considered immutable, supposedly ensuring that transactions within a block cannot be altered.

The idea was proposed by Superphiz in May 2022 when he questioned whether a staking pool would be willing to put the health of the chain before its own profits.

Interestingly, the largest Ethereum liquid staking provider, Lido Finance, voted by a 99.81% majority not to self-limit back in June.

“They have expressed an intention to control the majority of validators on the beacon chain,” Superphiz said in an Aug. 31 post.

Votes casted from Lido (LDO) token holders on the self-limiting proposal. Source: Snapshot

Lido currently dominates the Ethereum staking market, accounting 32.4% of all staked Ether, while the next entity, Coinbase, accounts for only 8.7% of the market, according to data from Dune Analytics.

*Ethereum stakers by staking amount and market share, showing that Lido is the only one above the 22% threshold. Source: Dune Analytics*

Who’s in the right? Mixed reactions from the Ethereum community

One industry pundit, “Mippo,” explained on Aug. 31 that the self-limit proposal has nothing to do with “Ethereum alignment” — a principle understood to enable credible neutrality and permissionless innovation on Ethereum.

Mippo claimed those trying to push the proposal wouldn’t make way if they were in Lido’s position.

“Everyone is doing the economically selfish and rational thing here,” Mippo concluded.

Yeah because they have way less market share than that now… easy to chirp from the cheap seats.

This has nothing to do with “Ethereum alignment.” None of these teams would self limit were they in Lido’s place.

Everyone is doing the economically selfish and rational thing…
— Mippo (@MikeIppolito_) August 31, 2023

“Folks in the ETH community should not shame more user-friendly solutions as greedy products,” said another observer.

However, others were more wary of the potential centralization issues at hand, describing Lido’s market share dominance as “disgusting and selfish.”

Magazine: DeFi Dad, Hall of Flame: Ethereum is ‘woefully undervalued’ but growing more powerful

Ethereum Ecosystem Altcoin Jumps in Price After Coinbase Ventures Invests in the Project

August 12, 2023 The Daily Hodl

Bitcoin price chart flashes a bullish sign that could lead to breakouts in ADA, QNT, RNDR and RPL

June 4, 2023 Coin Telegraph

Bitcoin

BTC’s chart is beginning to look bullish, and ADA, QNT, RNDR and RPL could rally if Bitcoin price breaks out to the upside.

The United States equities markets welcomed the debt ceiling deal and the May nonfarm payrolls data on June 2 with strong rallies. The S&P 500 rose 1.8% during the week while the tech-heavy Nasdaq was up 2%. This was the sixth successive week of gains for the Nasdaq, the first such occasion since January 2020.

In addition to the above, the expectation of the Federal Reserve remaining in a pause mode during the next meeting may have acted as a catalyst for the rally. CME’s FedWatch Tool is showing a 75% probability of a pause, with the remaining 25% expecting a 25 basis points hike in the June 14 meeting.

*Crypto market data daily view. Source:* *Coin360*

Rallies in the equities markets failed to trigger a similar performance in Bitcoin (BTC) and the altcoins. However, a minor positive is that several major cryptocurrencies have stopped falling and are trying to start a recovery.

Could bulls maintain the momentum and surmount the respective overhead resistance levels? If they do, which are the top five cryptocurrencies that may lead the rally?

Bitcoin price analysis

Bitcoin has been trading close to the 20-day exponential moving average ($27,233) for the past three days. This suggests that the bulls are buying the dip near $26,500.

*BTC/USDT daily chart. Source: TradingView*

The 20-day EMA has flattened out and the relative strength index (RSI) is just below the midpoint, indicating a balance between supply and demand. This balance will tilt in favor of the buyers if they drive the price above the resistance line of the descending channel pattern. That may start a northward march toward $31,000.

If the price turns down from the resistance line, it will suggest that the BTC/USDT pair may spend some more time inside the channel. The critical level to watch on the downside is $25,250. A break and close below this support may intensify selling and tug the price toward $20,000.

*BTC/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the bears are guarding the immediate resistance of $27,350. On the downside, the pair has been forming higher lows in the near term, indicating demand at lower levels. This enhances the prospects of a rally above the overhead resistance. If that happens, the pair may soar to the resistance line of the descending channel.

If bears want to gain the upper hand, they will have to quickly sink the price below the nearest support at $26,505. The next stop on the downside could be $26,360 and then $25,800.

Cardano price analysis

Cardano (ADA) has been repeatedly finding support at the uptrend line but the bulls have failed to kick the price above the 50-day simple moving average ($0.38).

*ADA/USDT daily chart. Source: TradingView*

A breakout from this tight range trading is likely to happen within the next few days. If bulls shove and sustain the price above the 50-day SMA, it will clear the path for a possible rally to $0.42 and then to $0.44.

Alternatively, if the price turns down from the 50-day SMA and dips below the uptrend line, it will suggest the start of a deeper correction. The ADA/USDT pair could then plunge to the strong support at $0.30.

*ADA/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the $0.38 level is behaving as a strong obstacle. However, the rising moving averages and the RSI in the positive zone indicate that the bulls have the upper hand. If buyers thrust the price above $0.38, the pair could climb to $0.40 and thereafter to $0.42.

If the price turns down sharply from the current level and breaks below the 50-SMA, it will suggest that bears have seized control in the near term. The pair may then collapse to $0.36 and later to $0.35.

Quant price analysis

After staying below the downtrend line for several days, Quant (QNT) turned around and started a recovery on May 26. The bulls continued their purchase and pushed the price above the moving averages on May 29, indicating a potential trend change.

*QNT/USDT daily chart. Source: TradingView*

The moving averages have completed a bullish crossover and the RSI is in the positive territory, indicating that the path of least resistance is to the upside. There is a barrier at $120 but if bulls overcome it, the QNT/USDT pair could rise to $128 and subsequently to $135.

Contrary to this assumption, if the price turns down sharply from $120, the bears will try to yank the price to the 20-day EMA ($110). This remains the key level to keep an eye on because a break below it will indicate that bears are back in control.

*QNT/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the price is stuck inside a trading range between $114.50 and $120. The 20-EMA is flattish but the RSI is in the positive territory, indicating that the momentum remains bullish. If bulls clear the hurdle at $120, the pair is likely to start the next leg of the up-move.

Conversely, if the price turns down and plummets below $114.50, it will suggest that bears have a slight edge. The pair may then slump to $110 and later to $102. The deeper the fall, the greater the time needed for the recovery to resume.

Render Token price analysis

While most major cryptocurrencies are struggling to start a recovery in a downtrend, Render Token (RNDR) has started a new upward move.

*RNDR/USDT daily chart. Source: TradingView*

The RNDR/USDT pair dipped to the 20-day EMA ($2.48) on May 31 but the bulls successfully defended the level. This shows a positive sentiment where traders are buying the dips to strong support levels. The pair could retest the 52-week high of $2.95. If this resistance is overcome, the pair may soar to $3.75.

The first sign of weakness will be a break and close below the 20-day EMA. Such a move will indicate aggressive profit-booking by the short-term bulls. That may open the doors for a possible drop to the 50-day SMA ($2.20).

*RNDR/USDT 4-hour chart. Source: TradingView*

The moving averages have completed a bullish crossover and the RSI is in positive territory, indicating that bulls have the upper hand. Buyers will try to push the price above the overhead resistance zone between $2.90 and $2.95. If they succeed, the pair may start a new uptrend.

On the contrary, if the price turns down from the current level or the overhead resistance and breaks below the moving averages, it will suggest that the bears are on a comeback. A break and close below $2.42 will indicate the start of a downward move toward $2.25.

Rocket Pool price analysis

Rocket Pool (RPL) has been trading inside an ascending channel pattern for the past several days. A positive sign in the short term is that the bulls have kept the price above the moving averages. This indicates a change in sentiment from selling on rallies to buying on dips.

*RPL/USDT daily chart. Source: TradingView*

The RPL/USDT pair has been trading inside a tight range for the past few days. This suggests that a range expansion could be around the corner. If the price breaks and closes above $50.50, it will suggest the start of an up-move to the resistance line of the channel. The bears are expected to defend this level with all their might.

This positive view will invalidate in the near term if the price turns down from the current level and breaks below the moving averages. The pair could then plummet to the support line of the channel.

*RPL/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the bulls are sustaining the price above the moving averages but they have failed to clear the overhead hurdle at $50.37. This suggests that bears continue to sell on minor rallies.

If the price turns down and breaks below the 50-SMA, it will indicate that the bulls have given up. The pair may then plummet to the support line near $46.

Contrarily, if buyers propel and sustain the price above $50.50, the bullish momentum may pick up and the pair could rally to $53.50.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Bitcoin’s recovery may trigger buying in these 4 altcoins

May 14, 2023 Coin Telegraph

ada

While most coins are reeling under pressure, Bitcoin and select altcoins such as ADA, ATOM, LDO, and ARB are showing promise.

The S&P 500 Index (SPX) closed the week with a nominal loss of 0.29% but Bitcoin (BTC) is on target to finish the week with a deeper cut of more than 5%. The weakness in Bitcoin pulled several altcoins lower, indicating weakening sentiment.

A silver lining is Bitcoin’s solid bounce on May 12. Several analysts anticipate Bitcoin to start a recovery but monitoring resource Material Indicators sounded cautious.

In a recent analysis, they said that the lack of a strong bid from the whales at lower levels could be a concerning sign. They believe that the bullish perspective will invalidate if Bitcoin sustains below the 200-week moving average.

Over the next few days, the progress on the debt ceiling talks between leaders from Congress and the White House is expected to take center stage. The uncertainty and risks of a potential U.S. default could keep the rally in the equities markets under check but it is difficult to predict how Bitcoin and altcoins will react to all the chaos.

Bitcoin has started a corrective phase and most altcoins have broken below their respective support levels. Only a handful of cryptocurrencies are looking positive on the charts. Let’s analyze the chart of the top five cryptocurrencies that may turn up in the near term.

Bitcoin price analysis

The long tail on Bitcoin’s May 12 candlestick shows that the bulls are aggressively buying the dips to the neckline of the inverse head and shoulders (H&S) pattern.

Buyers will try to push the price back into the triangle but may face stiff resistance from the bears. The downsloping 20-day exponential moving average ($27,959) and the relative strength index (RSI) below 41 indicate that bears have a slight edge.

If the price turns down from the 20-day EMA, the bears will again attempt to sink the BTC/USDT pair below $25,250. If they can pull it off, the selling may intensify and the pair could crash to $20,000.

On the upside, the bulls will have to clear the hurdle at the resistance line to regain control. The pair may then retest the overhead resistance at $31,000.

After facing stiff resistance at the 20-EMA, the bulls have cleared the obstacle. This indicates that the bulls are trying to seize control. The pair may first climb to the 50-simple moving average and then to $28,400.

On the contrary, if the price turns down sharply from the current level, it will suggest that the bears are trying to flip the support line of the triangle into resistance. The pair may then plunge to the crucial support at $25,250.

Cardano price analysis

Cardano’s (ADA) solid rebound off the uptrend line on May 11 suggests that lower levels continue to attract strong buying.

The bulls will try to resume the recovery by propelling the price to the 20-day EMA ($0.38). This level may act as a minor barrier but if bulls overcome it, the ADA/USDT pair could soar toward the neckline of the inverse H&S pattern. This level is likely to witness a tough battle between the bulls and the bears.

Another possibility is that the price turns down from the 20-day EMA and drops to the uptrend line. The repeated retest of a support level at short intervals tends to weaken it. That may open the doors for a potential fall to $0.30.

The bulls pushed the price above the moving averages, indicating that the bears may be losing their grip. The 20-EMA has started to turn up gradually and the RSI is in the positive zone, indicating that the bulls are on a comeback.

If buyers pierce the overhead resistance at $0.37, the pair could pick up momentum and rally to $0.40 and later to $0.42. Conversely, if the price turns down from $0.37, the pair may slide to the uptrend line.

Cosmos price analysis

Cosmos (ATOM) snapped back from the $10.20 support on May 10, indicating that the bulls are buying the dips to this level.

*ATOM/USDT daily chart. Source: TradingView*

The bears are trying to halt the relief rally at the 50-day SMA ($11.28) but the bulls have not given up much ground. This enhances the prospects of a rally above the 50-day SMA. If that happens, the ATOM/USDT pair could rally to the downtrend line.

This is an important level for the sellers to guard because a break above it will invalidate the bearish descending triangle pattern.

The critical support to watch on the downside is $10.20. If it cracks, the descending triangle will complete and the pair may then plummet to $8.50.

*ATOM/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the relief rally is facing selling at higher levels but the price action is forming a possible inverse H&S pattern that will complete on a break and close above $11.30. The pair may then start an up-move to $12 and subsequently to $12.50.

Alternatively, if the price turns down and breaks below the 50-SMA, it will suggest that the bears are in control. The pair may then slump toward the vital support at $10.20. A bounce off this level could keep the pair inside the boundaries of $11.30 and $10.20 for a while longer.

Lido DAO price analysis

Lido Dao (LDO) rebounded off the $1.60 support and has reached the overhead resistance at the 20-day EMA ($1.95).

*LDO/USDT daily chart. Source: TradingView*

The bears are trying to protect the 20-day EMA but the bulls have not given up. This suggests that the buyers expect the recovery to continue. If bulls drive the price above the 20-day EMA, the LDO/USDT pair could rally to the downtrend line. This level is likely to attract strong selling by the bears.

If buyers arrest the next decline above the 20-day EMA, it will suggest a change in sentiment from selling on rallies to buying on dips. The pair could then start a sustained recovery above the downtrend line.

On the downside, the bears will have to sink and sustain the price below $1.60 to indicate the resumption of the downtrend.

*LDO/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the bulls are trying to propel the price above the overhead resistance at $1.98. If they succeed, the pair will complete a bullish double bottom pattern. This reversal setup has a target objective of $2.39. If this level is also crossed, the pair may reach $2.60.

Contrarily, if the price turns down from the current level or $1.98 and breaks below the moving averages, it will suggest that bears are active at higher levels. That may keep the pair stuck between $1.57 and $1.98 for some time.

Arbitrum price analysis

Arbitrum (ARB) has been finding support near the psychologically important level of $1, indicating that the bulls are aggressively buying the dips.

*ARB/USDT daily chart. Source: TradingView*

On the upside, the bears have been attempting to stall the recovery at $1.20 but a minor positive in favor of the bulls is that they have kept up the buying pressure. That increases the likelihood of a break above $1.20. If that happens, the ARB/USDT pair could rise to $1.40 and later to $1.50.

This positive view will invalidate in the near term if the price turns down sharply from $1.20. That will point to a possible consolidation between $1 and $1.20 for a few days.

*ARB/USDT 4-hour chart. Source: TradingView*

The 20-EMA on the 4-hour chart has started to turn up and the RSI is in the positive territory indicating that the selling pressure is reducing. Buyers will try to strengthen their position by pushing the pair above $1.20. If they do that, the pair will complete a double bottom pattern, which has a target objective of $1.35.

The first sign of strength for the bears will be a break and close below the 20-EMA. That could pull the pair to $1.05. A slide below $1 will signal the resumption of the downtrend.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Over 440,000 Ethereum Added to Liquid Staking Derivatives in Two Weeks

May 13, 2023 Bitcoin.com

5 cryptocurrencies with the best upside potential in the week ahead

May 7, 2023 Coin Telegraph

Bitcoin

Bitcoin and Ethereum's ETH are finding buyers at lower levels, which may be a bullish sign for XMR, OKB and RPL.

Bitcoin’s (BTC) volatility has shrunk further this week and it is on track to form an inside-bar pattern on the weekly chart. Although the bulls are finding it difficult to clear the overhead hurdle in the $30,000 to $31,000 zone, a positive sign is that they have not ceded ground to the bears.

It is not only cryptocurrencies, even the S&P 500 Index has been oscillating inside a range for the past few days. This indicates that markets are awaiting a trigger to start the next directional move.

While the short-term price action is uncertain, analysts are getting bullish for the long term. Trader Titan of Crypto highlighted a potential signal on the Bollinger Bands monthly chart, which projects a rally to $63,500 in about a year.

While most major cryptocurrencies gave up some ground over the past week there are still some pockets of strength. Let’s analyze the charts of five cryptocurrencies that may turn up in the short term.

Bitcoin price analysis

Bitcoin turned down sharply from the resistance line of the symmetrical triangle pattern on May 6, indicating that the bears are not willing to let the bulls through. A minor positive is that the bulls have been buying the dips to the support line of the triangle as seen from the long tail on the day’s candlestick.

The flattish 20-day exponential moving average ($28,819) and the relative strength index (RSI) near the midpoint do not signal a clear advantage either to the bulls or the bears.

If the price breaks below the triangle, it will suggest that bears are trying to seize control. The BTC/USDT pair may first fall to $26,942 and then to $25,250.

On the other hand, a break and close above the triangle will suggest that the bulls have absorbed the supply. That may start a rally to $32,400 where the bears are again expected to mount a strong defense.

Buyers nudged the price above the triangle but the long wick on the candlestick shows that the breakout turned out to be a bull trap in the near term. BTC price turned down sharply and plunged to the support line of the triangle.

The bounce off this level has reached the moving averages, which is a key short-term level to watch out for. If Bitcoin's price turns down from the current level, it will raise the chances of a break below the support line.

Contrarily, if buyers kick the price above the moving averages, the pair may rise to the resistance line. The bulls will have to drive and sustain the price above this level to start an up-move.

Ether price analysis

Ether (ETH) faced a strong rejection above the psychological resistance at $2,000 on May 7. This indicates that the bears have not given up and they continue to protect the overhead resistance levels.

*ETH/USDT daily chart. Source: TradingView*

The 20-day EMA ($1,903) has flattened out and the RSI is near the midpoint, indicating that the ETH/USDT pair may remain range-bound in the near term. The boundaries of the range could be between $2,000 and $1,785.

A consolidation just below the local high is a positive sign. It shows that the bulls are in no hurry to book profits, increasing the possibility of a break above $2,200.

On the contrary, if the price plunges below $1,785, it will suggest that bears have seized control. That could start a fall to $1,619.

*ETH/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the bears could not build upon the break below the 50-simple moving average. This shows that the selling pressure reduces at lower levels. The bulls are trying to stage a recovery by sustaining the price above the 20-EMA. If they can pull it off, the pair will again try to retest the crucial resistance at $2,000.

On the contrary, if ETH price turns down from the current level and breaks below the 50-SMA, it will suggest that the bears are in command. That could sink the pair to the support line.

Monero price analysis

Monero (XMR) is trying to stay above the moving averages, indicating that the bulls are attempting a comeback.

*XMR/USDT daily chart. Source: TradingView*

The flattish 20-day EMA ($156) and the RSI just above the midpoint indicate a balance between supply and demand. If buyers thrust XMR price above the neckline of the inverse head and shoulders pattern, the advantage will tilt in their favor.

The XMR/USDT pair may then start a new up-move. There is a minor resistance at $181 but if that is crossed, the pair may reach $187.

Instead, if the price turns down from the current level or the neckline, it will suggest that the bears remain active at higher levels. The sellers will then try to yank the price below the $149-support, opening the door for a decline to $130.

*XMR/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the price rebounded off the 50-SMA but the bulls could not pierce the resistance line. This shows that the bears are selling on rallies. If the price snaps back from the 20-EMA, it will suggest that the sentiment is turning positive and traders are buying on dips.

The bulls will then make another attempt to clear the overhead hurdle. If they manage to do that, the pair could first rise to $162 and then to $164.

Alternatively, if the price turns down and breaks below the 50-SMA, it will suggest that bears are in control. That will increase the likelihood of a retest of the support line.

OKB price analysis

OKB (OKB) is trading inside a large symmetrical triangle pattern. Generally, in this setup, traders buy near the support line and sell near the resistance.

*OKB/USDT daily chart. Source: TradingView*

The bears are trying to maintain OKB price below the 50-day SMA ($45.57) while the bulls are attempting to reclaim the level. If the price turns up from the current level or rebounds off the support line, it will suggest demand at lower levels.

If buyers shove the price above the 20-day EMA ($46.87), it will suggest that the OKB/USDT pair may prolong its stay inside the triangle for some more time.

Contrary to this assumption, if bears sink the price below the triangle, it will suggest that the setup has behaved as a reversal pattern. That could start a new downtrend which is likely to pull the pair to $37.

*OKB/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the bulls are trying to defend the horizontal support near $44.35 but they have not been able to propel the price above the moving averages. This suggests that every minor relief rally is being sold into. If the price turns down from the current level and plummets below $44.35, the pair may slump to $41.70.

Conversely, if the price rises above the moving averages, it will signal accumulation at lower levels. The pair could first rise to $49.50 and thereafter attempt a rally to $53.

Rocket Pool price analysis

Rocket Pool (RPL) is looking strong as it is trading above the moving averages. This shows that the bulls are buying on dips.

The bulls will have to propel the price above the overhead resistance at $53.45 to signal that the corrective phase may be over. The RPL/USDT pair may thereafter attempt a rally to $58.

Another possibility is that RPL price rises from the 20-day EMA ($48.36) but turns down from $53.45. That will indicate a possible range-bound action between the 50-day SMA ($46.13) and $53.45 for some time.

A break and close below the 50-day SMA will be the first indication that the bears are in command. That will open the doors for a potential decline to $37.

The 4-hour chart shows that the bears are trying to sustain the price below the 20-EMA while the bulls are trying to push the price above it. If buyers succeed, the pair may rise to the downtrend line. This is the key short-term level to watch for. If this resistance is overcome, the pair may rally to $53.45.

Contrarily, if the price turns down from the current level and breaks below the 50-SMA, the price risks dropping to the support line. The bulls are likely to defend this level fiercely.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Defi Market Holds Steady at $49.31 Billion TVL, Lido Finance Leads the Pack With 24.82% Share

May 6, 2023 Bitcoin.com

New Cosmos chain will use liquid staking tokens from other networks for security

May 3, 2023 Coin Telegraph

ANKR

Staked ETH, BNB, ATOM, SOL and MATIC will be usable on Tenet as “restakes” to gain further rewards.

A new Cosmos-based blockchain called “Tenet'' will use liquid staking coins from other networks to secure its transactions, potentially allowing the new network to inherit the security of older ones, according to a May 3 announcement from the developers.

The network is currently available as a testnet and will launch a mainnet version as soon as testing is complete. This comes after liquid staking has recently become the largest decentralized finance (DeFi) protocol category.

Liquid staking protocols such as Lido, Rocket Pool and Ankr allow users to stake their coins with a network of validators and receive rewards without having to run their own nodes. These protocols also provide users with tokens called “liquid staking derivatives,” or LSDs, redeemable for the underlying deposits and rewards.

According to the announcement, Tenet will allow users to “restake” these LSDs to earn additional rewards on its network. And it will provide users with tokens that represent the LSDs themselves. The team calls these third-order tokens “liquid liquid staking derivatives,” or LLSDs. LLSDs will be usable in lending apps and decentralized exchanges throughout the Tenet network, the announcement said.

The team expects there to be two core benefits to using LSDs instead of a native coin to secure the network. First, it “ensures the long-term security of the Tenet chain by leveraging the joint security of each [layer 1] ecosystem it services.” Second, it should “bring additional liquidity and yield opportunities to LSDs.”

At launch, the protocol is expected to allow liquid staking derivatives of Ether (ETH), BNB (BNB), Cosmos (ATOM), Solana (SOL) and Polygon (MATIC) to be restaked on Tenet.

The new network is being developed by former executives of Ankr and Blockdaemon and is advised by members of the Lido, Ankr and OpenAI teams.

Liquid staking protocols have existed since 2020 when Lido was first launched. They grew in popularity in 2022 and early 2023 as the Ethereum network implemented a move to proof-of-stake and began to allow staking withdrawals. On May 1, crypto analytics platform DefiLlama announced that liquid staking had become the top category of DeFi apps when measured by total value locked.

Some experts have argued that liquid staking may grow in the future as a result of the Ethereum Shanghai upgrade.

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