👀ETH's Staking Record: Celebrate or Worry?

GM Readers. Your daily dose of BitDegree insights is ready 👀

Today’s selection:

• 💰Staked Volume of ETH Is Going UP

• 🧋Wednesday Bubbles

• 🎊BitDegree’s Birthday Celebration Wrap-Up

• 📰Bite-Sized News

• 👌Selected Meme of The Day

STAKED VOLUME OF ETH HAS REACHED MORE THAN 22%

ETH staking stands as a pinnacle of both profitability and safety in the DeFi space, with numerous strategies and derivatives revolving around it.

Because of this, the volume of staked ETH is growing fast. Now, 22% of all circulating ETH is staked, setting a new record.

If this trend continues, by May 2024, about 50% of all ETH could be staked...

Such figures are sounding alarms for many.

Yes, staking is fantastic and should be encouraged… However, not at the expense of Ethereum's security.

A sizable 32% of the staked ETH (8,722,950Ξ) is held by one protocol — Lido, and it's expanding its share.

To prevent the situation from spiraling out of control, Ethereum developers have incorporated a proposal into the upcoming Dencun update to slow down ETH staking growth.

Moreover, fresh players are diving into the staking arena, rolling out enticing features to draw from Lido's clientele.

In the future, the Ethereum team might come up with a more balanced solution.

For example, Vitalik Buterin suggested an approach where staking pools would face increased fees when their market share surpasses 15%.

This mechanism, implemented from Ethereum's end, would naturally push users to stake their ETH through alternative platforms.

TL;DR: The volume of staked ETH is growing fast. Now, 22% of all circulating ETH is staked, setting a new record. 32% of the staked ETH (8,722,950Ξ) is held by one protocol — Lido. This is a cause for concern about centralization risks.

WEDNESDAY BUBBLES

It’s time to take a sip of that delicious crypto bubble tea.

CRV
During the summer, Curve faced an attack. To mitigate the situation and maintain the token, the founder of the Curve Finance protocol had to adjust his on-chain lending strategy, especially since CRV was used as collateral in many places. Over time, the situation stabilized. As of today, the founder, Mikhail Egorov, has repaid the remainder of his loan on the Aave platform, indicating reduced selling pressure. Otherwise, if the asset were to be liquidated, the token would have suffered a significant price drop.

However, this is not the only factor influencing the price.

Things are not perfect with the other loans either. In recent months, Egorov has faced a wave of criticism due to lawsuits, purchasing expensive real estate, and liquidating a significant portion of CRV. This, combined with other factors, has kept the asset within the same price range, despite a nearly 20% increase over the week.

BITDEGREE’S B’DAY CELEBRATION WRAP-UP IS ALMOST HERE

Join us on 29th September at 16:00 UTC+3 / 20:00 GMT+7 / 9:00 EDT on our Discord.

We'll host a LIVE $500 raffle for those who've tackled our learning path.

Haven't joined yet? There's still time! But today is the last day to - complete the learning path.

Get set for the Zealy finals! Dive into a series of quests, opened exclusively during the event — and it's First Come, First Serve. So, be there on time!

BITE-SIZED NEWS

• SEC Chair Gensler to Clarify Crypto Regulation in Congressional Hearing. Upcoming Gensler testimony before Congress could reshape regulations linked to the crypto industry.

• Binance Hands Over Russian Operations to Newly Launched CommEX. Binance has locked the doors of its Russia-based arm.

• AirBit Club Co-Founder Handed 12-Year Sentence for Massive Cryptocurrency Scam. The judicial hammer came down hard on the AirBit Club co-founder.

Sounds interesting? Find more crypto news on our website: 

_{SELECTED MEME OF THE DAY}

Disclaimer: This newsletter is strictly educational. None of this information is intended to be financial advice. Always do your research and act responsibly with your profits.