- There’s more than a 142% increase in the demand for stETH wallet addresses.
- This is because of the benefits that come with liquid staking.
Lido Staked Ethereum is a major player within the liquid staking sector. So, liquid staking allows users to stake their Ethereum tokens and still get a digital representation of their tokens to utilize them for other projects. This makes this sector very attractive.
Since LUNA Downfall, Demand for Lido Staked Ethereum Surpasses Ethereum
- According to new data from Glassnode, there’s a massive change in the dynamics of demands within the Ethereum network. So, the advent of the proof-of-stake network changed a lot of things within this blockchain. One of the things here was the introduction of staking into the project. So, an aspect of this staking overtaking other sectors is liquid staking.
- Users prefer this because they can stake their ETH through them, and in return, they receive tokens called liquid staking derivatives. So, they can earn staking rewards while at the same time having control of their staked Ethereum assets. This is what makes liquid staking preferable for many. So, the largest liquid staking sector is Lido, which provides its users with stETH as a representation of derivatives. A weekly on-chain report from Glassnode shows Lido Staked Ethereum demand is low above that of standard Ethereum. So, 32% of shaking is through the Lido platform. This is around 7% of the total Ethereum supply, which is quite huge.
Number of Lido Staked Ethereum Addresses Surges to 142% While Ethereum Declines
- Since the advent of Lido Staked Ethereum, the demand for the normal Ethereum token is decreasing massively. So, this is because the Lido Staked Ethereum tokens offer more benefits when liquid staking than the original ETH tokens. Data from Glassnode shows normal ETH tokens are suffering massively from the latest occurrences. So, the 30-day SMA of the new Ethereum addresses is declining by about 5% since the LUNA collapse. Note that the LUNA collapse was around May 2022.
- On the other hand, Lido Staked Ethereum is having a massive show in the number of wallet addresses. So, there’s a huge demand for them. There’s about a 142% Increase in demand for stETH addresses during the same period.
Current Ethereum Price Update
- At the time of writing, the price of Ethereum is revolving around the $1,616 price levels. So, there’s already a close to 2% decline in the daily price chart. This is quite a reflection of the current situation of Bitcoin, which is also suffering from a recent market decline.
- There’s also close to a 3% decline in the Ethereum weekly chart, although the highest price level here was more than $1.7k.
Conclusion
New data from Glassnode is showing the full picture of the massive competition Lido Staked Ethereum is posing for normal ETH. So, the demand for these tokens is increasing to new levels. There’s currently more than a 142% increase in the demand for stETH wallet addresses.
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The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
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