Ethereum Staking Continues to Thrive Despite Decline in DeFi Assets
Ethereum staking has remained strong even as the value of DeFi assets has declined. The total value locked (TVL) within DeFi protocols has dropped to under $38 billion, a significant decrease from its peak of $178 billion in November 2021.
Key Points:
- The TVL within DeFi protocols is currently below the level after the collapse of centralized exchange FTX in November 2022.
- Lido and Coinbase’s staking service have seen an increase in TVL, with Lido’s TVL rising from $6 billion to $13.95 billion.
- Liquid staking protocols like Lido and Coinbase’s staking service are not included in the TVL figure.
- Liquid staking allows investors to stake their assets and earn yield while still enjoying trading liquidity.
- The decline in the TVL of platforms like Aave and Curve Finance could be influenced by the hawkish monetary policy of the US Federal Reserve.
Despite the decline in DeFi assets, Ethereum staking has remained resilient. Protocols like Lido and Coinbase’s staking service have seen a significant increase in TVL. Liquid staking provides an attractive alternative for investors, allowing them to earn yield while maintaining trading liquidity. The decline in TVL for platforms like Aave and Curve Finance may be influenced by the US Federal Reserve’s hawkish monetary policy. Overall, Ethereum staking continues to be a popular choice for crypto investors.
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