DeFi

Lido investors pull $2.5 billion worth of Ether from staking giant as rivals circle – DL News

Published

8 months ago

5 June, 2024

Lido investors pull $2.5 billion worth of Ether from staking giant as rivals circle – DL News

Lido’s share of the staking market has fallen to 28%.
Its decline comes amid the rise of EigenLayer and liquid restoration protocols.

In a sign that new rivals are gobbling up Ether, Lido’s share of the multibillion-dollar Ethereum staking market fell this month to its lowest level in two years as deposits plummeted.

Since March 1, investors have withdrawn approximately 800,000 Ether deposited at Lido, worth approximately $2.5 billion, according to DéfiLlama data. Over the past 30 days, it has lost more Ether than any other staking service.

Lido’s share of the staking market fell from around 32% in November to just under 29%.

A warning

The decline of the Lido will encourage some hard-line supporters of decentralization, who have long argued warned the protocol’s dominance could lead to possible control of Ethereum itself if nothing is done.

Since a major upgrade in September 2022, Ethereum operates on staking instead of the Proof of Work consensus process used by Bitcoin miners. Ethereum now requires users to stake or lock up their Ether in exchange for a modest annual yield.

Compared to Bitcoin mining, it is a low consumption method of confirming and ordering transactions on the blockchain. Some users stake Ether themselves while others entrust their Ether to centralized exchanges like Coinbase, or liquid staking protocols like Lido and Rocket Pool.

Lido is the largest decentralized finance protocol. Investors have deposited over $30 billion in crypto on Lido. Its liquid staking token, stETHis the more used collateral asset in DeFi.

The critics have suggested that the Lido limits itself by capping its share of Ether put into play. But the cooperative which governs the protocol, in its vast majority, rejected a proposal for self-limitation in 2022.

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Today, Lido’s market dominance is weakening anyway.

Marking market changes

Its decline is part of a broader shift in Ethereum staking activity. Liquid staking protocols account for less than a third of all Ethers staked, according to data compiled by pseudonymous data analyst Hildobby. That’s down from nearly 37% for much of last year.

Centralized exchanges have also stumbled. Since November, their share of staking activity has fallen from 30% to 25%.

Meanwhile, protocols offering so-called liquid retaking are booming and now account for over 6% of all staked Ether. These protocols make it easy to deposit Ether or staked Ether into EigenLayer, a year-old protocol that has quickly become one of the most talked about projects on Ethereum.

The share of “unidentified” stakeholders has also increased over the past six months, from around 15% to more than 18%, according to Hildobby.

This group includes players who do not follow liquid staking or trading protocols, centralized exchanges, home amateurs, or institutional staking pools.

Deposits are decreasing

While liquid staking protocols and centralized exchanges have lost market share, the loss has been particularly pronounced in Lido.

After a staking-related upgrade in April 2023, depots at Lido jumped. Between May and February, monthly deposits fluctuated between 200,000 Ether and 1 million Ether.

By March, however, the EigenLayer deposits cratered. Users deposited only 32,600 Ether at Lido last month. Less than 16,000 Ether was deposited at Lido in the first 22 days of April.

Upcoming changes

This crisis comes as Lido makes several long-awaited changes.

This month, the Lido welcomed solitary punters with the aim of increasing its decentralization.

And members of the Lido DAO, the cooperative that governs the Lido, are currently vote on a proposal that would give stETH holders a say in the protocol’s governance and give stakeholders the opportunity to angrily quit.

“Even if the protocol fails, users can still exit without authorization with their funds intact, and there is nothing token holders can do about it,” Lido said in a statement. blog post announcing the vote.

“This is something truly new for financial markets and infrastructure. Something that is only made possible by the non-custodial nature of on-chain DeFi.

Aleks Gilbert is a DeFi correspondent based in New York. Do you have any advice? Send him an email to aleks@dlnews.com.

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DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

Discover the exciting opportunities of the Rollblock (RBLK) presale today!

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DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their own due diligence before making any high-risk investments in Bitcoin, cryptocurrencies or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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