Ethereum

Liquid Staking Derivatives

Steve

Rocket Pool

Cosmos

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 <h2 id="liquid-staking-winning-for-the-defi-sector">Liquid Staking Winning For The DeFi Sector</h2> 
 <p>This surge has positioned <a rel="noopener noreferrer nofollow" title="Liquid staking" href="https://thebittimes.com/tag/liquid-staking.html">Liquid staking</a> as the dominant segment in decentralized finance (DeFi), surpassing the previous top application, lending. <a rel="noopener noreferrer nofollow" title="Liquid staking" href="https://thebittimes.com/tag/liquid-staking.html">Liquid staking</a> services such as Lido and Rocket Pool reached their peak in April of the previous year, with over $21 billion in assets, only to experience a decline during a turbulent period marked by the TerraUSD stablecoin’s collapse and a $2 trillion crypto-market downturn.</p>  
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 <p>Meanwhile, the prices of major tokens and the interest in most DeFi services remain well below the records set in 2021 and 2022, creating a stark contrast with the resurgent <a rel="noopener noreferrer nofollow" title="Liquid staking" href="https://thebittimes.com/tag/liquid-staking.html">Liquid staking</a> sector, Bloomberg stated.</p> 
 <p>Liquid staking’s popularity has surged, particularly after Ethereum embraced it as part of network upgrades in the past year. Ethereum validators, those who lock up Ether tokens to facilitate Ethereum transactions, now earn an annual equivalent of about 4% in additional coins. Rival blockchains like Solana and Cardano have also entered the staking rewards arena.</p> 
 <p>The number of validators in Ethereum has seen significant growth, with a nearly 40% increase following a substantial network enhancement in April, according to Steve Berryman, Chief Business Officer at staking service provider Attestant.</p>  
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 <p>Participating directly in staking typically involves complex software, hardware, and substantial capital commitments. <a rel="noopener noreferrer nofollow" title="Liquid staking" href="https://thebittimes.com/tag/liquid-staking.html">Liquid staking</a> protocols, however, have simplified the process, accepting smaller investments and offering users a version of pledged coins that can be used elsewhere.</p> 
 <p>Also Read: Watchmaker Casio Partners With Polygon Labs to Launch Its G-SHOCK NFTs</p> 
 <h2 id="the-risk-analysis">The Risk Analysis</h2>  
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 <p>Kunal Goel, a Messari research analyst, likened these services to “the on-chain equivalent of government bonds,” noting their lower risk profile and absence of major hacks or exploits.</p> 
 <p>This resurgence in <a rel="noopener noreferrer nofollow" title="Liquid staking" href="https://thebittimes.com/tag/liquid-staking.html">Liquid staking</a> comes amid a backdrop of increased regulatory scrutiny on crypto, particularly in the United States, where centralized exchanges’ staking products have faced crackdowns, prompting some platforms like Kraken and Bitstamp to discontinue these offerings. Similar regulatory concerns have arisen in Hong Kong and Singapore.</p> 
 <p>Currently, Lido ranks as the largest DeFi service with $14 billion in assets locked on the platform. Its native token has surged by 60% this year, surpassing the 27% increase in a benchmark of the largest 100 cryptocurrencies.</p> 
 <h2 id="more-projects-in-liquid-staking">More Projects In Liquid Staking</h2> 
 <p>Furthermore, the Cosmos Hub is considering a significant software upgrade proposal, which includes replacing existing staking modules with the Liquid Staking Module (LSM), a move aimed at enhancing safety in liquid staking across the Cosmos Hub.</p> 
 <p>HashKey Capital, one of Asia’s leading crypto funds, recently published a report on Liquid Staking Derivatives (LSDs) in the DeFi market, highlighting the market’s remarkable growth. The report also discusses the impact of Distributed Validator Technology and the potential for further growth in the LSDfi sector, though with a cautionary note on reduced staking yields as more investors enter the market.</p> 
 <p>Also Read: Crypto Prices Today: Market Hits The Bears With Pepe Coin, GALA And ASTR Facing Price Correction</p> 
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/defi-rolls-towards-ath-amid-crypto-recovery-states-bloomberg-tbt61538.html">https://thebittimes.com/defi-rolls-towards-ath-amid-crypto-recovery-states-bloomberg-tbt61538.html</a></p>

DeFi Rolls Towards ATH Amid Crypto Recovery, States Bloomberg

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