2023-11-10 05:00 |
It has been a good week for cryptocurrencies. Bitcoin price surged to over $37,000 for the first time in 18 months. Similarly, Ethereum price surged to over $2,100 after Blackrock unveiled its ETH ETF. As a result, most altcoins, including Huobi Token, Jasmy, and Ethereum Classic surged.
Liquid staking tokens surgeA crucial group of crypto tokens that also jumped were those involved in liquid staking. Lido DAO (LDO) and Rocket Pool (RPL) were two of the best-performing tokens on Friday as they jumped by over 20% in the past 24 hours.
LDO vs RPL chart
For starters, Lido and Rocket Pool are the two biggest players in the liquid staking industry. Liquid staking allows users to stake their tokens in a decentralized manner. The key benefit is that people with such assets can easily withdraw them even before the end of the month.
Rocket Pool has 819,000 ETH staked, which is currently valued at more than $1.7 billion. Users of the platform can earn over 7% in APR if they stake and run a node and 3.12% if they just stake.
Lido DAO, has grown to become the biggest DeFi protocol in the world with over $19 billion in total assets. Users in the platform can stake Ethereum and Polygon. It has over $18 billion worth of ETH and $123 million worth of MATIC. Its ETH staking earns an APR of 3.5%.
It is worth noting that Ethereum is having a lower yield than the US dollar. With interest rates rising, the US dollar is yielding over 5%. However, money market funds tend to have weak growth.
BlackRock wouldn't register for a Spot Ethereum ETF unless they were certain that the Spot #Bitcoin ETF would be accepted with 100% certainty. pic.twitter.com/tSstfztdQY
— Mister Crypto (@misterrcrypto) November 9, 2023 Ethereum price risingThe main reason why LDO and RPL stock price surged is that Ethereum price has made a bullish breakout. ETH price surged to a high of over $2,100, the highest level since May 2022. It has jumped by more than 141% from the lowest point this year, giving it a market cap of more than $254 billion.
Ethereum price has surged because of the overall crypto rally. Bitcoin has jumped to over $37,000 while the total market cap of all cryptocurrencies surged to over $1.4 trillion.
ETH token surged after Blackrock filed for an ETH ETF. The argument is that the Securities and Exchange Commission (SEC) will first approve the Bitcoin ETF. That will be followed by an ETH ETF.
It is still unclear whether the SEC will approve an Ethereum ETF. For one, Ethereum is quite different from Bitcoin because of how the technology works. Bitcoin uses the proof-of-work (PoW) technology while Ethereum uses a proof-of-stake (PoS) tech.
By using the PoS technology, Ethereum has staking features, which are quite problematic with the SEC. The SEC likely sees Ethereum as a financial security, which could lead to its denial.
There is a bullish case for Lido DAO. For one, LDO has a growing market share in the DeFi industry. Also, unlike other crypto tokens, Lido is almost done with its token unlocks. It has a total circulation supply of 1 billion. 89% of these tokens have already been unlocked.
The post Here’s why staking tokens Rocket Pool (RPL), Lido DAO (LDO) spiked appeared first on Invezz
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