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- Along with the upcoming public test network of Ethereum Shanghai, the governance tokens of known liquid staking protocols in the industry are experiencing a price increase.
- Lido’s $LDO, StakeWise’s $SWISE, and Rocket Pool’s $RPL, increased by 64.0%, 8.6%, and 16.8%, respectively, over the week.
- According to a pseudonymous analyst, the reason for the price increase is obviously because of the Ethereum Shanghai, which will allow withdrawals of staked ETH.
Following the upcoming launch of the Ethereum Shanghai upgrade, the value of liquid staking protocols and its tokens is seen to have surged. Particularly, Lido and its governance token, Lido DAO or $LDO, jumped by 64.0% in a week, according to the data from CoinGecko.
Aside from Lido, the governance tokens of other top liquid staking products, such as StakeWise’s $SWISE and Rocket Pool’s $RPL, also increased in value. $Swise went up by 8.6%, while $RPL plunged by 16.8% in the past week.
Staking pools are platforms that allow crypto enthusiasts with small portfolios to receive rewards in cryptocurrency for staking.
Shanghai was previously announced on December 8, 2022, by Ethereum developers’ coordinator Tim Beiko, who noted that the hard fork was set to happen in March this year. A hard fork requires all users to upgrade their software in order to continue participating in the network.
Accordingly, pseudonymous analyst CroissantEth complimented the current rally of these governance tokens.
“Most recently liquid staking derivatives have had a nice uptrend. This is thanks to the Shanghai upgrade expected in a few months which will enable withdrawals of staked ETH,” he tweeted.
What is Shanghai Upgrade?
In order for the Ethereum community to be ready for the hard fork in March, Shanghai will take place first before the end of February. It is a key software upgrade that will allow users to withdraw staked $ETH in the Beacon Chain from December 2020 as well as the stake coins for the Ethereum Merge.
This article is published on BitPinas: Liquid Staking Protocols Experience Token Price Increase Amid Ethereum Shanghai
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.
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- Source: https://bitpinas.com/cryptocurrency/liquid-staking-protocols-price-increase/