Shanghai upgrade leads to a high flight of the Ethereum cartel: Lido Finance is the winner

09. Juli 2023

Krypto News Österreich

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Ethereum (ETH) experiences an enormous upswing after his latest upgrade called Shanghai. According to a report by the blockchain intelligence company Glassnode, the Ethereum network continues to be dominated by the so-called Ethereum cartel, especially through Lido Finance.

Originally, concerns were expressed that the Shanghai upgrade in April would cause users to quickly stake and take off their tokens. However, the analysis of Glassnode shows the opposite. In fact, the number of deposits rose to 8,108 per day after upgrading an average of 460 per day. On June 2, the network even recorded an impressive increase to 13,595 deposits. In comparison, the daily number of deposits for Ether was an average of 2,267.

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A winner of this development is Lido Finance, who has already caused a sensation because of its oversized footprint in the cliffs of the Ethereum network. The use of liquid stitching refers to the deposit of Ethereum in a protocol, which is then bundled with the insoles of other users and the ETH pleaded on behalf of the user. In return, users receive the token Steth, who represents their position used and accumulated their own rewards. Lido recently reached a new all -time high and now has 7.49 million Steth. This means that Lido surpasses the second largest pool rocket pool, which contains only 461,000 Steth, 16 times the amazing.

However, it should be noted that Lido has the largest offer and the greatest liquidity and has the best network effects, but does not record an increase in the number of new users. In addition, since the upgrade, the Steth fluid has been shifting into Defi protocols. The token has lost importance in certain Dex liquidity pools, especially in the largest pool (Steth-Eth) of Curve. The total value of this pool has dropped by 39 %, a level that has not been reached since Terra Luna's collapse. On the other hand, the use of collateral in credit protocols has increased, which indicates that investors are trying to maximize the arrest.

Despite these developments, the Ethereum cartel continues for the time being. It remains to be seen how the dominance of Lido Finance and other actors in the Ethereum network will develop in the future. However, it is undeniable that Ethereum has experienced a strong buoyancy after the Shanghai upgrade.

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