In a move that an increasing number of large-cap altcoins are seeking to copy, ADA gained impressively during the past few days, going from below $1.30 to the highs as sell walls disappeared.
Now, analysts are eyeing short-term targets of $5 as Bitcoin (BTC) continues to range, giving fuel to an already lively altcoin scene.
“The thing I don’t like on ADA right now: There was a lot of volume, and now there’s not,” popular trader Scott Melker said in a note of caution during a market overview earlier in the week.
He added that the ADA/USD chart nonetheless still “looked fine” but that the pair was currently better suited to investors rather than short-term traders.
Against BTC, ADA remains far below its all-time high — a trait common to many altcoins despite their U.S. dollar performance. ADA/BTC reached 0.000071 BTC in January 2018 and currently resides at 0.00003 BTC.
What’s in a bull run?
As Cointelegraph reported, altcoin price action remains led by freak moves on tokens that have seen few or no events from a technical or adoption perspective.
First Dogecoin (DOGE) and then Ethereum Classic (ETC) became standouts, the latter seeing all-time highs of its own on May 7 as DOGE/USD cooled from its recent run.
Famous cryptocurrency names have even taken to mainstream platforms to draw consumers’ attention to fundamental differences between Bitcoin and altcoins.
“In terms of Dogecoin, it’s no different than GameStop, where GameStop is a real company but became a bit of a meme with a certain contingent of the retail trading audience,” Ryan Selkis, founder of analytics platform Messari, told CNBC on Thursday.
Bitcoin’s dominance of the overall cryptocurrency market capitalization meanwhile continues to decline, hitting one-year lows below 45%.
Ripple posted its Q1 markets report on May 6th and revealed that total sales net of purchases had gone from $76.27 million in Q4 2020, to $150.34 million in Q1 this year.
Ripple noted the surge in sales was led by the growing demand for RippleNet’s working capital service On-Demand Liquidity or ODL:
“The increase in XRP sales can be attributed to deeper engagement from key ODL customers. For well over a year, Ripple has not sold programmatically.”
The firm added: “Ripple continued to engage in sales to support ODL and key infrastructure partners as part of providing increased XRP liquidity to improve the ODL experience of certain customers, eliminating the need for pre-funding and enabling instant global payments.”
According to CryptoCompare, total sales by Ripple accounted for just 0.07% of global XRP volume.
According to Ripple, ODL enables RippleNet clients to source instant liquidity in XRP that can be converted into international currencies within three seconds, removing the need to hold pre-funded accounts for international payments.
The company also reported that over the quarter, three billion XRP had been released from its massive escrow holdings — however 2.7 billion XRP had been returned to new escrow contracts.
Sheraz Ahmed, the host of the Crypto Valley Association podcast and managing partner at Storm Partners, a crypto and blockchain solutions provider, told Cointelegraph on April 9th that:
“XRP’s upward momentum is fueled by Ripple’s newly announced 40% stake in Asia’s leading cross-border payment processor, Tranglo. The partnership will undoubtedly increase Ripple’s exposure to the Asian market.”
Additionally, wallets holding between 1 million to 10 million XRP grew by 6.3%, up from 1,125 in Q4 to 1,196 in Q1.
The SEC case alleging Ripple Labs of selling unregistered securities worth $1.3 billion, does not appear to be preventing big players from increasing their holdings. The report revealed that the number of XRP whales had increased 3.5% in Q1. The firm posted data via Santiment, which showed “whale wallets” holding 10 million XRP or more increased from 308 in Q4 2020, to 319 in Q1 2021.
Recently confirmed U.S. Securities and Exchange Commission chair Gary Gensler punted to congress on providing more regulatory oversight to the crypto space, but also said the commission would act within its purview.
In a virtual hearing held by the House Financial Services Committee today, North Carolina Representative Patrick McHenry asked Gensler what the regulatory body would be doing to ensure a “vibrant digital asset marketplace with legitimate money and the rule of law.” McHenry highlighted collaborations across regulatory agencies regarding digital assets and cryptocurrencies.
Gensler said the crypto market could benefit from “greater investor protector” within the Securities and Exchange Commission’s, or SEC’s, current authority around securities and other financial products. He added that he believed only the U.S. Congress had the power to address such regulatory oversight rather than having the commission overreaching its authority under his leadership.
“Right now, the exchanges, trading in these crypto assets, do not have a regulatory framework either at the SEC or our sister agency, the Commodity Futures Trading Commission,” said Gensler. “That could instill great confidence. Right now, there’s not a market regulator around these crypto exchanges, and thus there’s really not protection against fraud or manipulation.”
The hearing today was the third held regarding the controversy over GameStop stock shorts earlier this year. Lawmakers have been exploring allegations of market manipulation from Robinhood and major hedge funds in response to Redditors’ short squeeze of GameStop stock and others. The price of GME has been volatile since peaking at $469.49 on Jan. 28, falling to under $50, and since fluctuating between $100 and $300.
Senate members officially voted on Gensler’s nomination last month, meaning this was his first hearing on the GameStop controversy as SEC chair. During his confirmation hearings with the Senate Banking Committee, Gensler said he supported the SEC excluding Bitcoin (BTC) from its regulatory purview.
Europe’s leading financial app Revolut has finally enabled Bitcoin withdrawals four years after it first provided crypto trading services to some users, and a year after it extended trading to all 7 million users worldwide.
The financial tech firm announced today the beta launch of Bitcoin withdrawals with exclusive access first given to its U.K.-based top-tier Metal customers. Revolut also plans to roll out withdrawals worldwide — it has users in the U.S., Australia and elsewhere — and to other client tier-bases in the future.
To begin with, Revolut users will be able to add three external addresses and withdraw between 500 to 1,000 pounds a month, with Revolut also introducing two-factor authentication to ease security concerns.
Nik Storonsky, Founder and CEO at Revolut, noted that users had demanded withdrawals:
“Crypto withdrawals have been a heavily requested feature within Revolut’s crypto community and we’re delighted that we can begin the gradual process of rolling it out. Customers can lock down wherever they feel safest — whether it’s Revolut, into hot or cold storage, or to another exchange.”
“This is just the start of a long list of new crypto features we plan to launch so we can offer customers one of the best crypto products on the market,” he added.
Revolut is a London based firm that offers its clients’ bank accounts, debit cards, currency exchange, commission-free stock trading, crypto exchange, and foreign exchange services. The app supports customers across Europe, Canada, Singapore, Japan, the United States, and Australia.
In addition to its increasing attention from investors, Dogecoin (DOGE) appears to have found a niche following among sports fans.
Speaking to Cointelegraph, Dallas Mavericks basketball team owner Mark Cuban said that the people had “taken control of DOGE,” as evidenced by the tickets and merchandise sales he had seen since first offering the token as a method of payment in March. Prior to adopting the asset, the Mavericks had already been accepting Bitcoin (BTC) payments through BitPay since 2019.
However, Cuban indicated that no other cryptocurrency had quite produced the numbers the team has seen from Dogecoin:
“We sell more Mavs merchandise for DOGE on a typical day […] than we did in a year with BTC or ETH,”
Major League Baseball fans have begun to show similar enthusiasm in recent days. Oakland Athletics president Dave Kaval announced this week that the franchise had sold two plaza infield tickets the same day the team said it would be offering them for 100 DOGE — roughly $46 at the time. In contrast, it took more than two weeks for a sports fan to cough up the BTC needed to pay for one of the stadium’s six-person suites. However, at 1 BTC, the price of the tickets was significantly higher.
At time of publication, the price of DOGE is more than $0.63, having surged significantly over the last week, month and quarter to reach new all-time highs. Mike Novogratz’s Galaxy Digital recently published a report referring to DOGE as “the most honest sh*tcoin,” while many expect Tesla CEO Elon Musk to pump the price of the token during his Saturday Night Live appearance this weekend.
All the attention from social media and news outlets regarding the coin over the last several months may have demanded a lot from its co-creator Jackson Palmer. The San Francisco Bay Area resident’s tweets are now protected, and his website’s homepage includes a message stating he does “not have any thoughts to share” on crypto or Dogecoin.
Speaking on Dogecoin’s value as an asset, Mark Cuban said “DOGE is the ultimate in strength in numbers,” elaborating:
“It’s the ultimate decentralized evolution. Rather than an edict coming from an ivory tower that defines value, the law of supply and demand is defined by an algorithm.”
Back in February, the billionaire referred to DOGE as the “lowest cost economics teaching tool available that entertains at the same time,” later jesting that he expects the coin’s price to reach $1 should the Dallas Mavericks sell an additional 6,556,000,000 DOGE worth of merchandise. At its current price point, the asset needs only to rise another 59% to reach that milestone.
Betterment, a major financial advisory company providing robo-advising and cash management services, has not yet decided whether it will introduce cryptocurrencies to its platform.
Betterment is still researching a potential expansion of its services to inclue digital assets like Bitcoin (BTC), CEO Sarah Levy said.
“We’re believers that if we can provide the right kind of context and advice, that it’s OK to participate in some of these newer asset classes,” Levy said in a Tuesday interview at Bloomberg’s Wealth Summit. “I’d like us to find a way to responsibly offer crypto, but I can’t say that we’re there yet. I think we’re still in kind of a watch-and-learn mode,” she added.
Founded back in 2008, Betterment is a popular platform in the United States, helping clients to invest in a globally diversified portfolio of stocks and bonds, allocated to an “appropriate level of risk” for a given timeline.
In April, the company announced record-breaking growth in the first quarter of 2021, adding $10 billion to its AUM and reporting a 116% increase in new clients year-over-year. Previously, Betterment acquired the U.S. book of rival Canadian robo-advisor WealthSimple, a company that launched Canada’s first regulated crypto exchange in September 2020.
At the time of writing, the largest altcoin by market capitalization was in pure price discovery mode as it sought resistance above $3,500.
The week had already seen new highs for Ether’s price on a daily basis, with seven-day gains standing at 36%.
Among analysts and traders alike, the sense of excitement on the day was palpable.
“I have been calling for $3600 $ETH for well over a month, but think it can go much higher,” Scott Melker told Twitter followers.
Short-term price targets have called for $5,000, and while zooming out, $10,000 and even $20,000 are not unheard of targets, as Ether has outperformed Bitcoin (BTC) in U.S. dollar gains throughout the past year.
Winklevoss calls Dogecoin “the people’s money”
On May 4, however, ETH was not alone. After somersaulting off its own all-time highs last month, Dogecoin returned with a vengeance, abruptly crushing its personal best to pass $0.50 for the first time.
Discovery of a new price ceiling was likewise still in progress at the time of writing, with DOGE/USD taking out $0.55 on the back of 38% daily gains.
The move came as major exchange Gemini announced that it had integrated support for Dogecoin, a day after trading platform eToro announced the same.
“Dogecoin is the people’s money. It’s organic, irreverent, and fun,” co-founder Tyler Winklevoss commented.
Bitcoin predictably felt the heat from the altcoin advance, shedding both market dominance and price strength to near $55,000 for the second time in 24 hours.
Bitcoin (BTC) is back testing lower levels after failing to conquer $60,000 resistance — and indicators suggest the downturn is not over.
BTC/USD bounced off $55,000 overnight on Monday, hours after hitting local highs of nearly $59,000 in bullish early trading.
With sellers still in place closer to all-time highs of $64,500, the largest cryptocurrency has a lot of work to do to exit its current broad trading range.
BTC moves back to exchanges
One metric which may soon be causing problems for bulls is the overall BTC balance on cryptocurrency exchanges.
While seeing a general steep downtrend throughout the past year, local spikes in supply — when traders send coins back to their exchange accounts for potential quick sale — tends to reflect a more selling-driven mentality entering.
This is not the case for every exchange this week. According to data from monitoring resource Bybt, 16,222 BTC has entered global leader Binance in the past seven days. By contrast, institutional platform Coinbase Pro has actually lost 11,947 BTC, conforming to the overall trend.
Yet Binance is not alone — Okex, Huobi, Bitfinex and Kraken have all seen their BTC balances tick up in the last 24 hours.
The greed is rising
As Cointelegraph reported, a familiar face from sentiment changes past is back this week — greed.
Tracked by the Crypto Fear & Greed Index, which measures trader sentiment using a basket of weighted factors, appetite for a sell-off is rising, even as price action is no longer positive.
On Tuesday, the Index gave an overall crypto market score of 68/100, corresponding to “greed” being the overall mood driver.
This is still below its mid-90s peak seen earlier in the year — a level which almost guarantees a sell-off — but volatility ensures that the Index does not stay in the same zone for long. “Greed” can turn to “extreme greed” or “extreme fear” within days or even faster.
On April 27, for instance, the Index measured just 27/100.
Dogecoin adds to altcoins’ Bitcoin pressure
Last but not least is perhaps the most conspicuous factor at play when it comes to problems for Bitcoin this week: altcoins.
At first, it was Ether (ETH), which led the pack and outshined Bitcoin with its trip above $3,000 to all-time highs on Monday.
Now, however, Dogecoin (DOGE) is leaving the rest in its dust, back above $0.47 after getting integrated on popular trading platform eToro.
DOGE/USD was up 72% in a week compared with Bitcoin’s 3% at the time of writing.
While altcoin surges come in bouts, the mood among analysts is increasingly one of a longer-term trend taking center stage before Bitcoin can claw back lost time — and market dominance.
As Cointelegraph reported, one indicator even suggests that the combined altcoin market cap could explode by more than 27,000% by the start of 2022.
“The next 2-3 months are going to be epic for alt coins,” the popular Twitter trader known as Johnny summarized to followers, also forecasting a near-term price target of $5,000 for Ethereum.
Bitcoin’s market share is currently 46.3%, falling ever lower thanks to altcoin inflows.
Bitcoin (BTC) is challenging familiar but significant all-time highs as a new week gets underway, rallying to $58,000 on Monday.
After a surprise rally on Friday, the largest cryptocurrency saw a slow comedown through much of the weekend. This turned on its head overnight on Sunday, however, and now BTC/USD is back fighting resistance near $60,000.
Cointelegraph takes a look at what the coming days might have in store for Bitcoin price action with five factors that could help shape it.
Bitcoin ignores DXY gains
With various major markets closed for May holidays, there are fewer cues than usual coming from commodities and equities.
Asian stocks tracked losses, fuelled by various issues including India’s ongoing COVID-19 debacle. At the same time, in the United States, S&P 500 futures are already recovering lost ground from Friday.
Unlike Bitcoin, markets did not react well to rumors that fiscal support measures over the virus may be reduced by some banks — these were a key element behind the S&P’s record performance over the past year.
In tandem with the move was a shift in the strength of the dollar, however, with the U.S. dollar currency index (DXY) seeing impressive gains after a month of descent.
As Cointelegraph reported, DXY and Bitcoin tend to be inversely correlated, but last Friday proved to be another notable exception. BTC/USD climbed conspicuously as if out of nowhere on the day, passing $58,300 before reversing.
A key topic remains inflation — senior U.S. officials believe that trillions of dollars in virus stimulus will have little impact on it, while others disagree.
Spot rally enters next stage
Another day, another blistering comeback for Bitcoin.
Just a week after recovering from its dip to near $46,000, BTC price action is now making good on its further gains late last week.
While the weekend was mostly lackluster in tone, Monday is seeing the kind of “buying frenzy” that arch-nemesis Warren Buffett has been eyeing on traditional markets.
At the time of writing, BTC/USD has passed $58,300 — the site of an all-time high from February — and is now continuing higher, calming near $59,000.
A look at buy and sell demand from the orderbook of major exchange Binance shows resistance is still strong at $60,000 and above, and bulls will need to knock down several walls of sell orders to break out beyond the current all-time high of $64,500. Another significant barrier is now $68,000.
On the support side, the picture is less sturdy — $52,000 is the first solid level among traders, followed by $50,000 and $48,000.
Nonetheless, appetite for Bitcoin could well be seeing a new bullish phase as stablecoin balances on exchanges fill up. Against huge “printing” of these assets, such a trend raises the prospects of significant buyer demand materialising, helping to boost spot price action.
“Stable coins are flowing back into exchanges. You know what that means,” analyst Jan Wuestenfeld summarized.
Friday’s gains were notably driven by “genuine” buying among spot traders, while leveraged trades actually declined.
Cat and mouse with Ethereum
Another theory focuses on Bitcoin simply playing catch-up with a red-hot altcoin scene, led by Ether (ETH).
The performance has defied expectations; ETH/USD is now above $3,000, having gained 28% over the past week compared to Bitcoin’s 11%.
That predictably shaved even more clout off Bitcoin’s market cap dominance, which is now at 47.7% — its lowest since July 2018.
“I wouldn’t be surprised if we see $3500 $ETH this week,” popular Twitter trader Crypto Chase forecast, along with further upside against Bitcoin.
“ETHUSD breaking out from its upward consolidative leg + ETHBTC still has room to run (currently 0.053, resistance at 0.058).”
On-chain monitoring resource Glassnode, meanwhile, saw strength in the decreasing network value to transaction ratio (NVT) on Ethereum, this corresponding to organic trade volume fuelling price gains.
“As $ETH price reaches over $3,000 setting a new ATH, the NVT Ratio is driven back down towards this cycles lows,” the firm commented on an accompanying chart.
“Low NVT Ratios indicate transaction volumes are high and growing faster than the network market cap. Today’s market strength is supported by volume settled on-chain.”
Fundamentals flush out hash crash
Back to Bitcoin and its network fundamentals, which are still playing catch-up after seeing something of a “reset” over the past few weeks.
This first came in the form of a brief hash-rate plunge due to flooding in China. Bitcoin’s network difficulty then began signaling a drop to accommodate the loss of participants.
As difficulty adjusts every two weeks, it took until Saturday to kick in in real terms. The resulting 12% drop has been the biggest since last November.
With that out of the way, however, the door is open for returning mining hash rate to up competition and return difficulty to positive, not negative, adjustments. It’s still early — current estimates still call for another drop, this time of around -7%.
Hash rate, meanwhile, has all but recovered from its prior shock, standing at around 161 exahashes per second. Its peak, monitoring resource MiningPoolStats says, was 168 EH/s.
Greed is back on the market
With new gains comes a familiar shift in sentiment, and market participants are getting greedy.
That’s according to the ever-popular Crypto Fear & Greed Index, which on Monday is back in “greed” territory after more than doubling since late last week.
The Index uses a basket of factors to create a normalized score between 0 and 100 for how greedy or fearful crypto markets broadly are on a given day.
Its score tends to highlight when a price floor is in, or conversely, when a sell-off is due. At 61/100, however, the Index still has room to grow before sounding a local top — “extreme greed” is not here yet.
Crypto investors are scratching their heads this week, as a key indicator suggests that Bitcoin is about to take center-stage once more — even as Cointelegraph Markets Pro subscribers had the opportunity to take major profits on altcoins such as Rally (RLY), Polygon (MATIC) and Ampleforth (AMPL).
Since Markets Pro was launched in January, the Altseason Analysis indicator has leaned heavily toward altcoins — and indeed, the performance of an evenly-weighted basket of the Top 100 altcoins has strongly outperformed holding Bitcoin since Markets Pro began tracking these metrics on January 3.
The Altseason Analysis, developed for Markets Pro by data analytics firm The TIE, works similarly to the VORTECS™ Score, but adds two additional variables including press release data from tokens and exchange listing data.
It compares current market conditions to those in the past, to assess whether the market currently looks more bullish for altcoins or bitcoin for the next 14 days.
The VORTECS™ Score includes sentiment analysis, tweet and trading volume, and price action as components of the algorithm — which are then weighted according to a proprietary formula based on how similar these are to historical conditions. If there is a similarity in these factors, the score will be higher when historical precedents have most consistently led to higher prices.
Although the Altseason Analysis indicator has since swung back towards altcoins and Bitcoin’s market dominance has dipped below 50%, the market may be preparing for a surge in the largest cryptocurrency as investors rotate out of large cap alts and back into BTC.
However, the swing towards Bitcoin certainly hasn’t deterred crypto investors from seeking out altcoins for rapid profits.
Polygon (MATIC) Analysis
As seen in the chart below, on April 22, Polygon’s price was still searching for the floor between $0.30 and $0.40 when the VORTECS™ algorithm briefly detected a favorable historical pattern and assigned a V-score of 81 to the asset (first red circle).
Nothing would happen for the following three days as the overall market conditions remained neutral. Finally, early on April 26, MATIC’s favorable individual disposition fused with the reversal of the wider market, producing a run from $0.35 to $0.83 (first and second red boxes).
As the rally began, the VORTECS™ algorithm recorded a long stretch of ultra-high scores (up to 97), suggesting that, judging from historical precedent, the momentum was not going to expire anytime soon.
Ampleforth (AMPL) Analysis
This week’s top NewsQuake™ is an unusual case: The announcement of one token’s listing triggered a 33%+ increase in another token’s valuation.
The announcement in question was the news of Binance listing FORTH, the governance token of the Ampleforth ecosystem, which is not yet tracked on Markets Pro. The main asset of the two-token system, AMPL, is tracked; this is the one that saw its price appreciate by one-third in the aftermath of the news.
As seen in the chart below, Markets Pro subscribers received the news of the FORTH listing via a dedicated Discord channel and in-browser notifications, just before a steep price ascent.
NewsQuakes™ are sourced from a real-time aggregation engine, collated from over a thousand primary sources every minute and analyzed by an AI algorithm to determine the historical significance of the news. NewsQuakes™ are trained on staking announcements, exchange listings and key partnerships, and because they are delivered without human intervention, they can often be the fastest way for market participants to learn about major events in the cryptocurrency space.
Rally (RLY) Analysis
Another conspicuous example of a well-timed NewsQuake™ was the price action of Rally (RLY). On April 29, its price soared on the news of the token’s listing on Bithumb — news that was delivered in a timely fashion to Markets Pro subscribers (first red circle in the chart below).
It is worth noting that the same announcement also featured the Bithumb listings of OCEAN and CHZ, yet it didn’t have nearly as much impact on these assets’ prices.
Listing announcements can have different effects on coins’ valuations depending on the size of the exchange and the asset’s market capitalization – another variable to be factored into NewsQuake™-driven trading strategies.
Cointelegraph Markets Pro is available exclusively to subscribers on a monthly basis at $99 per month, or annually with two free months included. It carries a 14-day money-back policy, to ensure that it fits the crypto trading and investing research needs of subscribers, and members can cancel anytime.
Cointelegraph is a publisher of financial information, not an investment adviser. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial advisor before making financial decisions.Full terms and conditions.
As a weeklong pump carries the meme cryptocurrency up 12% on the daily to $.33 and a staggering 43.8% higher on a 7-day basis, some are now speculating the rally could be fueled perhaps in part by a social media tease from billionaire Elon Musk that he’ll be participating in a Saturday Night Live sketch titled “The Dogefather.”
Musk’s fascination with the digital currency dates back to last year, and he has recently only seemed to double-down on what may be an elaborate social media prank. While one of his companies, electric carmaker Tesla, added BTC to the balance sheet last year, the entrepreneur still seems to approach crypto generally with a touch of befuddlement — admitting that blockchain could be the future of human commerce, while also poking fun at its absurdities.
“What would be the most ironic outcome? That the currency that was invented as a joke in fact becomes a real currency,” he said of Doge in an interview in February.
In January, the Blockchain Research Lab published a paper, “How Elon Musk’s Twitter activity moves cryptocurrency market,” that found six instances of Musk’s social media activity propelling DOGE higher.
Likewise, an analysis from Protos found that four of his tweets had a double-digit percentile impact on DOGE’s price (his tweets about Bitcoin and Ethereum may also move those markets, but DOGE’s lower marketcap makes it easier to pump).
One of the largest ETH 2.0 and Terra staking services is now looking to expand to other proof-of-stake chains, starting with upstart layer 1 Solana.
In a proposal today on Lido’s governance forums, crypto infrastructure provider Chorus One laid out a plan to build “a liquid staking token (for now: stSOL) that will accrue staking rewards and represent staking positions with Lido validators on Solana,” similar to Lido’s current interest-accruing stETH token.
Development funding to bring Lido’s services to an additional chain would come from the Lido Ecosystem Grants Organization, a program Lido’s governance kicked off in March. Chorus One’s requested a compensation package including 2,000,000 vested LDO tokens and a revenue-sharing model that would entitle Chorus One to 20% of the revenue from protocol fees that would go to the Lido treasury.
The milestones for Chorus One’s vesting unlocks are notably ambitious, including a 1 year cliff to “capture 2.5% of the staked SOL supply,” as well as 1,000,000 tokens scheduled to begin a one year vesting schedule “when Lido for Solana manages to capture 25% of the staked SOL supply.” The proposal notes that Chorus One is currently the largest SOL staker with $600 million in tokens.
A representative for Lido told Cointelegraph that an expansion could be a boon for the protocol’s income.
“For the Lido DAO, an expansion to liquid staking on Solana could bring with it a similar protocol fee set-up as we’re currently seeing with stETH/liquid staking on Ethereum, whereby a 10% fee on staking rewards is collected and split between node operators and the Lido DAO treasury (e.g. to grow an insurance fund),” they said.
They also noted that the door remains open to expanding to other Proof of Stake chains.
“Lido has a very simple mission – keep Ethereum staking simple, secure and decentralised – and we will look to extend this to other networks where possible,” they said.
Per Lido’s website, the services currently accounts for 256,964 ETH staked (worth over $700 billion) across nearly 5000 addresses earning 7.1% APY, and is the third-largest staking pool currently live per Nansen. While estimates vary, once ETH 2.0 launches, the APY rewards are expected to increase significantly.
Lido’s $LDO token has been on a tear as of late, rising 54% on a 24 hour basis to $2.9 and 216% on the week — a run possibly fueled by another governance proposal that would diversify a portion of the treasury to a group of notable venture capital funds, including Delphi Digital, Digital Currency Group, Three Arrows Capital, and Alameda Research.
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