- Polkadot explored liquid staking for its DeFi endevors.
- Staked DOT rose amid falling reward rates, while sentiment shifted and social engagement remained active.
Liquid staking has become a focal point in the DeFi space recently, playing a significant role in the growth of the Total Value Locked (TVL) across various DeFi protocols.
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Polkadot gets into the liquid staking space
In a notable development for the Polkadot [DOT] ecosystem, a strategic partnership emerged between ZodiaCustody and paritytech. This partnership aims to improve the staking landscape by facilitating institutional access to the Polkadot network, including participation in the staking process.
Beyond staking, this collaboration will also deliver vital custody services to support the Polkadot ecosystem.
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? A new long-term strategic partnership between @ZodiaCustody and @paritytech will enable institutional access – including staking – to the Polkadot ecosystem! pic.twitter.com/BO8hocrI73— Polkadot @Token2049 (@Polkadot) September 13, 2023
Alongside the above developments, the amount of staked DOT has continued to grow over the last month. However, this increase has coincided with a decline in reward rates.
A falling reward rate raises questions about the sustainability of the staking model and its appeal to users.
Source: Staking Rewards
How is DOT doing?
On the social front, the sentiment surrounding DOT took a hit over the past few weeks. This dip in sentiment could have ripple effects on market behavior and investor confidence, influencing the decisions of both retail and institutional players.
Despite these challenges, DOT demonstrated a robust position in terms of social engagement. Engagement levels surged by 64%, and the number of mentions related to DOT increased by 16.4%.
Such heightened interest suggests that DOT remained on the radar of cryptocurrency enthusiasts and investors at press time.
Source: Santiment
Realistic or not, here’s DOT’s market cap in BTC’s terms
Over the last month, the price of DOT saw a decline, moving from $5.05 to $4.149 at the time of writing. Furthermore, development activity experienced a fall, suggesting that new developments on the network may be slowing down.
Moreover, the price volatility of DOT surged. These fluctuations can influence the trading environment for DOT and potentially affect its adoption and long-term outlook.
Source: Santiment
