Will This Cryptocurrency Still Outperform Ethereum This Year After Gaining 150% Already?

Cryptocurrency in Canada – Staking on the Ethereum blockchain has become increasingly popular this year, which has helped Lido DAO thrive. Interest in staking is exploding ahead of the next Ethereum (ETH 7.85%) upgrade known as Shanghai this month. Lido DAO (LDO 17.89%), which has increased by approximately 150% this year, is perhaps one of the greatest winners from this surge in new interest in staking. It surpasses Ethereum’s 28% year-to-date increase by a wide margin of Cryptocurrency.

Yet two important issues must be resolved if Lido DAO is to surpass Ethereum this year.

Will the popularity of staking keep rising?

Due in large part to Ethereum’s shift from a proof-of-work blockchain to a proof-of-stake blockchain as part of The Merge in 2022, staking rose to prominence in the cryptocurrency industry Cryptocurrency on Canada.

Due to the similarities between staking and depositing money into an interest-bearing account, the term “staking” has come to be synonymous with “passive income” among investors. For a fixed period of time, you receive rewards on your crypto holdings, but you are unable to sell or withdraw the underlying cryptocurrency during that time. Because they require your cryptocurrency to authenticate fresh blockchain transactions, people are prepared to give you these incentives. The staked value of Ethereum reached $20 billion by November 2022.

Will This Cryptocurrency Still Outperform Ethereum This Year After Gaining 150% Already
Will This Cryptocurrency Still Outperform Ethereum This Year After Gaining 150% Already

Staking inflows are expected to increase in 2023, according to the most recent monthly statistics. Of course, not all of that cash is going to Lido DAO, but this emerging cryptocurrency already accounts for about 75% of the market for liquid staking, the most well-liked type of staking. Comparatively, Coinbase Global, the second-largest cryptocurrency exchange in the world, holds 15% of the market for liquid staking. Lido DAO is the undisputed market leader, and it isn’t even close, which makes it evident why investors are excited about it.

Also, according to data from Coinbase, there is a sizable untapped market for Ethereum staking. Coinbase determined that just 12% of all Ethereum is staked as of the end of November.

There is a valid explanation for this: The option for the typical investor to stake their Ethereum has really just been accessible for six months as Ethereum only became a proof-of-stake blockchain in September. Staking became popular so fast because it was seen to be a fairly simple method to make up to 5% of your Ethereum holdings. To entice new consumers, some bitcoin exchanges were providing rates that were much higher. Presumably, Lido will continue to gain from additional staking inflows as more Ethereum is staked over time.

Will Lido DAO be left alone by the SEC?
The Securities and Exchange Commission (SEC) has made it clear that it is prepared to take legal action against any cryptocurrency exchange that provides consumers with staking products, including companies like Coinbase. The SEC fined cryptocurrency exchange Kraken $30 million in February for providing consumers with staking goods. The staking products offered by Kraken, according to the SEC, are an example of unregistered securities. All stake-taking by Kraken has now ended. For its part, Coinbase says it is prepared to resist attempts to outlaw staking on its platform.

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