Lido Surges: Promising LSD Tokens that Might Soar in the Next Two Months!

Recently, as the crypto market picks up, altcoins have recorded decent growth along with mainstream coins. In particular, tokens in the Liquid Staking Derivatives (LSD) category on Ethereum surged. LDO, for instance, was up 111% in 30 days, while tokens like SWISE and SSV also grew at varying degrees.

Source: CoinEx

Speaking of ETH LSD, we have to mention the Merge in late 2022. Following the Merge, Ethereum completely shifted from PoW to PoS. Later on, Tornado Cash was sanctioned by the U.S. government. Ethereum was repeatedly questioned after it entered the PoS era. Fortunately, the market turmoil has ended, and Ethereum has gradually become deflationary as the market rebounds.

According to Beaconcha, 16,037,484 ethers are now staked on Ethereum, with 501,176 active validators.

Source: Beaconcha

At the moment, liquid staking protocol Lido remains the largest ETH LSD project, accounting for nearly 30% of the total ETH staked; about 2,098,912 ethers are staked through Coinbase, which takes up 13% of the total ETH staked; whales rank third and staked approximately 1,331,488 ethers, 8.26% of the total figure.

Source: Etherscan

Along with the surge of LDO, investors have turned to the ETH LSD category. As Ethereum’s Shanghai Upgrade approaches, the related tokens may record decent growth. Today, let’s check out some of the promising LSD projects.

1. Lido

Lido is not only the №1 platform in terms of the ETH staked but also the largest DeFi protocol by TVL, accounting for 17.3% of the total market.

Source: DefiLlama

Simply put, Lido mainly provides liquidity staking services for users of Ethereum, Polygon, Solana, Polkadot, and Kusama. In particular, 4,664,288 ethers are staked through the platform. Although LDO has soared, many whale holders are still dumping the crypto, which makes it hard for the price to keep growing.

Source: DefiLlama

2. accounts for a comparatively small share of the ETH staked, it has gained favorable momentum during the current rebound, which also indicates strong investor confidence. Plus, the project will soon upgrade its mainnet and become fully circulated, and whale holders aren’t dumping SSV tokens.

Source: Dune

3. StakeWise

As the market rebounds, the market cap of StakeWise has reached $15.5 million. Also, the project promised to distribute 90% of the profits to the stakers. StakeWise has not been listed on CoinEx for the time being, and tokens are unlocked on a daily basis, which creates some selling pressure.

Source: Token Terminal

Although the market has slightly recovered, when we turn to its future prospects, we may find it lacks narratives that can mobilize the hot money in the crypto space. After the shock of consecutive slumps, speculators quit, and investors are waiting for the opportunity while holding “chips”. Still, the rise of the LSD category reminds us that Ethereum’s Shanghai Upgrade might be a narrative that could stimulate the market in the next two months, and investors should keep track of the latest development of the category.

In my view, premium assets should always be backed by decent platforms, thereby making themselves accessible to more investors. As such, over the past few years, I’ve kept jumping from one platform to another until I found CoinEx. As a global crypto exchange founded in December 2017, CoinEx has provided first-rate services for over 4 million users across more than 200 countries and regions worldwide.

In 2022, CoinEx redefined its slogan to “Making Crypto Trading Easier”, aiming to break free from the shackles of traditional finance, make the crypto market more accessible, and work as a major gateway for global users to the crypto world. To that end, CoinEx has perfected its user services and product usage to grow into an exchange where even beginners could trade cryptos with ease.

Disclaimer: No investment advice is provided in this article, and all data mentioned herein are for reference only. You should not rely on the information provided herein to make any investment decision, and you will be fully liable for your own investment decisions.



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