Lido (LDO) Leads Liquid Staking Derivatives Resurgence
Liquid staking platforms and their associated tokens are seeing a resurgence this week. Industry leader Lido is leading the pack as its LDO token skyrockets.
The newest narrative in the crypto ecosystem is liquid staking derivatives. They offer a more flexible way to stake and earn without locking up crypto collateral.
Momentum for such platforms is mounting especially as the staked Ethereum unlock approaches. Ethereum will go through the Shanghai upgrade in March which releases ETH staked for over two years on the Beacon chain.
It will not be released simultaneously for network security purposes. Liquid staking platforms are likely to benefit because they provide better yield opportunities as the staking token can be used in other DeFi protocols unlike ETH staked directly.
Narratives... that's what you're trading if you want a successful cycle— Rager (@Rager) January 8, 2023
Narratives are already starting well before the bull market
Liquid staking is just one narrative that likely performs well, there are others $LDO has been strong this week pic.twitter.com/fEDuLlfmbA
Liquid staking tokens have been on fire during the Monday morning Asian trading session. Lido DAO's LDO token leads the race with a whopping 30% gain.
The governance token has doubled in price over the past fortnight it climbed from around one dollar to reach $2 a couple of hours ago, LDO has reached its highest level since mid-sSpetember.
The same cannot be said for other crypto assets or even Ethereum which have only managed 9% over the last week.
There are almost 10 million ETH staked and Lido has 4.8 million of that total this gives the platform a commanding market share of 30%.
The narrative applies to other liquid staking derivative tokens like StakeWise (SWISE) which has made 20% daily.
One week later, pretty impressive performance from the LSDs. For comparison, $ETH is up by just 5.7% in the same period— Karl (@karl_0x) January 8, 2023
Even with a billion dollar market cap, from a risk adjusted point of view $LDO is the clear winner here https://t.co/eTmLXrmS7I pic.twitter.com/XaSbHRlS8A
NFTs and DeFi leading markets in previous cycles. it could be liquid staking platforms this time.
There is a rare sea of green lines across markets. Total capitalization has reached a three-week high following a 3.2% gain on the day. the total cap is currently $884 billion having gained 5.7% since the beginning of the year.
Furthermore, Lido's LDO is the clear leader today, other crypto assets performing well with double-digit gains include Cardano (ADA), Solana (SOL), and ApeCoin (APE).
Also, Bitcoin has finally touched $17,000 while Ethereum has topped $3100 once again.