How LSD market remains resilient
- Despite market turbulence, demand for Liquid Staked ETH protocols remains strong.
- Lido leads the sector with 28.9% market share, while Rocket Pool prepares for expansion with new integration.
The recent turbulence in the cryptocurrency market caused by the SEC’s lawsuit against Binance and subsequent token delistings has created significant uncertainty. However, despite the market conditions, several Liquid Staked ETH (LSD) protocols experienced high demand in recent days.
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Interest in staked ETH rises
According to analyst Osmo, protocols such as rETH, stETH, and frxETH have witnessed a notable surge in interest. Among these, Lido has emerged as the dominant player, capturing 28.9% of the overall market share. Over the past month, Lido’s activity has surged by 38.9%, as per data from token terminals.
LSD market changes over the last month are reflective of the regulatory landscape.
– wstETH: +62.71%
– stETH: +59.75%
– rETH: +56.90%
– cbETH: -6.61%
– sfrxETH: +50.21% pic.twitter.com/1dVqPGTMDg
— Emperor Osmo? (@Flowslikeosmo) June 17, 2023
Rocket Pool, another popular LSD protocol, also saw a 6.1% increase in activity during the same period. On the other hand, Frax Finance experienced a relatively lower growth rate with a 3.4% uptick in activity.
In terms of revenue, Frax Finance witnessed a 19.9% increase despite its lower activity compared to other protocols. Lido saw a 9.39% rise in revenue, while Rocket Pool’s revenue remained unchanged during this period.
However, Rocket Pool’s fortunes may soon change. The staked ETH for Rocket Pool, known as rETH, is set to be utilized on protocols like MakerDAO and Polygon in the future. This development is expected to significantly impact Rocket Pool’s growth and contribute to its rapid expansion.
While Rocket Pool pursues market share in the LSD sector, Lido has been consistently enhancing its protocol through various proposals. Notably, one proposal involves the establishment and funding of the Community Lifeguards Initiative (CLI).
The CLI actively engages new community stakers, creates educational content, organizes initiatives, represents community operators in Lido DAO discussions, participates in working groups, and facilitates information sharing during Lido Node Operator community calls.
State of the tokens
Regarding the tokens of these LSD protocols, it is worth mentioning that their market capitalization experienced a slight uptick in recent days. However, the network growth of these tokens continued to decline, indicating reduced interest from new addresses.
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Overall, despite market volatility and regulatory challenges, LSD protocols such as Lido, Rocket Pool, and Frax Finance have shown resilience and witnessed varying degrees of growth and revenue. As these protocols continue to evolve and explore new opportunities, the future landscape of LSD protocols remains intriguing, with the potential for further advancements and expansion.