GM Readers. Your daily dose of BitDegree insights is ready š
Today's selection:
- š°Staked Volume of ETH Is Going UP
- š§Wednesday Bubbles
- šBitDegree's Birthday Celebration Wrap-Up
- š°Bite-Sized News
- šSelected Meme of The Day
STAKED VOLUME OF ETH HAS REACHED MORE THAN 22%
ETH staking stands as a pinnacle of both profitability and safety in the DeFi space, with numerous strategies and derivatives revolving around it.
Because of this, the volume of staked ETH is growing fast. Now, 22% of all circulating ETH is staked, setting a new record.
If this trend continues, by May 2024, about 50% of all ETH could be staked...
Such figures are sounding alarms for many.
Yes, staking is fantastic and should be encouragedā¦ However, not at the expense of Ethereum's security.
A sizable 32% of the staked ETH (8,722,950Ī) isĀ held by one protocol ā Lido, and it's expanding its share.
To prevent the situation from spiraling out of control, Ethereum developers have incorporated a proposal into the upcoming Dencun update to slow down ETH staking growth.
Moreover, fresh players are diving into the staking arena, rolling out enticing features to draw from Lido's clientele.
In the future, the Ethereum team might come up with a more balanced solution.
For example, Vitalik Buterin suggested an approach where staking pools would face increased fees when their market share surpasses 15%.
This mechanism, implemented from Ethereum's end, would naturally push users to stake their ETH through alternative platforms.
TL;DR:Ā The volume of staked ETH is growing fast. Now, 22% of all circulating ETH is staked, setting a new record. 32% of the staked ETH (8,722,950Ī) is held by one protocol ā Lido. This is a cause for concern about centralization risks.
WEDNESDAY BUBBLES
It's time to take a sip of that delicious crypto bubble tea.
CRVDuring the summer, Curve faced an attack. To mitigate the situation and maintain the token, the founder of the Curve Finance protocol had to adjust his on-chain lending strategy, especially since CRV was used as collateral in many places. Over time, the situation stabilized. As of today, the founder, Mikhail Egorov, has repaid the remainder of his loan on the Aave platform, indicating reduced selling pressure. Otherwise, if the asset were to be liquidated, the token would have suffered a significant price drop.
However, this is not the only factor influencing the price.
Things are not perfect with the other loans either. In recent months, Egorov has faced a wave of criticism due to lawsuits, purchasing expensive real estate, and liquidating a significant portion of CRV. This, combined with other factors, has kept the asset within the same price range, despite a nearly 20% increase over the week.
BITDEGREE'S B'DAY CELEBRATION WRAP-UP IS ALMOST HERE
Join us on 29th September at 16:00 UTC+3 / 20:00 GMT+7 / 9:00 EDT on our Discord.
We'll host a LIVE $500 raffle for those who've tackled our learning path.
Haven't joined yet? There's still time! But today is the last day to - complete the learning path.
Get set for the Zealy finals! Dive into a series of quests, opened exclusively during the event ā and it's First Come, First Serve. So, be there on time!
SELECTED MEME OF THE DAY
