As the withdrawal deadline for unstaking Ethereum approaches, tokens supporting multiple liquid staking protocols are experiencing a sharp surge.
According to data from CoinGecko, Lido Finance (LDO) and Rocket Pool (RPL) have already achieved massive benefits over the past twenty-four hours.
Lido Finance, the largest liquid-staking platform on Ethereum, is powered by the governance token LDO, which has increased by more than 17.2% in the past day and is now trading for over $1.
The trading volume of the liquid-staking derivative cryptocurrency jumped by 436 percent over the previous day, reaching $276 million across multiple platforms.
LDO now sits as the 33rd most valuable cryptocurrency with a market capitalization of approximately $1.5 billion, data from CoinGecko revealed.
Coinglass presented that around $1.61 million worth of LDO futures positions were liquidated the day before. Approximately 66% of liquidations were the consequence of short positions being exhausted.
Based on the total value locked (TVL), finance has surpassed MakerDAO as the largest decentralized application, dethroning it as the creator of DAI.
LDO is also the highest weekly gainer, with a colossal 74.8% increase over the past week compared to Bitcoin’s tiny 3.8% increase over the same period.
Data from CoinGecko also revealed that Rocket Pool’s native token RPL, which is also a liquid staking token, has recorded substantial gains of 14.2% during the past day.
RPL is currently selling at about $26.13 and its daily trading volume increased by 802% to $7.8 million the previous day. Despite today’s modestly bullish movement, RPL remains 56.6% below its all-time high of $59.46.
In addition to having liquid staking tokens, Ethereum has weekly returns of over 10% and daily returns of 4.4%.
Ethereum successfully transitioned to a proof-of-stake (PoS) consensus method at the beginning of September 2022. The change eliminates the need for energy-intensive mining equipment by substituting these devices with a more energy-efficient staking method.
To join the network as a validator, users must initially deposit 32 Ethereum. If they accomplish this and authenticate the network with integrity, they may obtain a percentage yield; if they do not, they may be subject to hefty fines on the staked funds.
Despite the high yield offered, which now allows users to earn up to 4%, many individuals find it challenging to invest 32 ETH, or almost $42,000. Using sites like Lido and Rocket, investors can bet any amount of Ethereum and still get rewards.
Because of the high upfront charge, these funds cannot be recovered once they have been wagered (until the next Ethereum upgrade).
This is why Shanghai is an important upgrade. After this upgrade is implemented, users will be able to withdraw their staked Ethereum. The Shanghai upgrade js scheduled to launch in March 2023.
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