- Ethereum Shanghai hype has come to an end thanks to the emergence of the PEPE coin, the SUI token launch and the US banking crisis.
- Liquid Staking protocols stand at $4 billion behind the Decentralized Exchange protocols in terms of total value locked.
- DEX tokens, along with Liquid Staking tokens, have also declined significantly following the broader market cues.
Ethereum had a hold over the crypto market at the beginning of April, thanks to the Shanghai upgrade that arrived on April 12. However, the emergence of PEPE and SUI tokens, along with the banking crisis over the last two weeks, has taken the spotlight away from the biggest DeFi chain and liquid staking tokens.
Read more - Bitcoin prices inches closer to $30,000 as Fed says this hours after PacWest Bancorp wrecks
Ethereum staking withdrawal reign comes to an end
Ethereum Shanghai was one of the most important upgrades for the network as it enabled the staking withdrawal service for the second-biggest cryptocurrency chain in the world. Until its arrival on April 12, this was one of the most discussed topics in the crypto market.
Given the broader market conditions and the investor's focus shifting to other trending topics, this hype has come to an end. The launch of the PEPE coin towards the end of April, the launch of the SUI mainnet and token this week, as well as the second iteration of the banking crisis in the US, have taken the top spot when it comes to investors' attention.
Going forward, liquid staking protocols might have to suffice with the spot as the second biggest category of Decentralized Finance (DeFi) applications.
These Dapps were expected to take over Decentralised Exchange (DEX) protocols thanks to the Shanghai hype, but the same might not happen now, with DEXes retaining a $4 billion lead.
DEX vs. Liquid Staking protocols TVL
Liquid staking tokens, along with DEX tokens, are also now following the broader market cues, resulting in significant declines over the last month or so. The likes of Lido DAO, Ankr and Stafi tokens have all declined by 16% to 23% in the span of four weeks in the liquid staking market.
Liquid Staking tokens 30-day change
While in the DEX market, major tokens like PancakeSwap, Uniswap and 1Inch have lost between 10% to 40% of their value in the same duration.
Ethereum, too, is losing its dominance on social channels as the overall mentions of the DeFi mothership have declined by 37% since the upgrade. The overall social volume it commanded since the upgrade went live has slipped from 11,200 to 7,000 at the time of writing.
Ethereum social dominance
Thus, crypto stood the test of time for still being a trend-driven market and for the same reason, from now on, investors looking to invest their money in liquid staking should focus on fundamentals instead of relying on hype.
Read more - SUI mainnet is live, token drops to all-time low of $1.15 in sell-the-news event
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.