More than 3 months after the de-peg with a drop of 0.94 of the stETH/ETH pair, Smart Money is showing signs of returning to Staked Ethereum products.
The reason behind
The main reason could be that Ethereum's transition from POW to POS is generally invisible making Liquid Staking platforms more important than ever in this ecosystem. Stakers contribute to the security of Ethereum by locking their ETH to these platforms in exchange for APR. Normally, the locked coin/token cannot be used for trading or profit. LidoDAO, Compound, Rocket Pool,.. solve this problem by issuing derivative tokens like stETH, cETH, rETH and tradable like a normal ETH. This stimulates the maximization of ETH held profits by Holders.
The next reason is related to the Shanghai upgrade, which is expected to launch in mid-2023, at which time investors holding ETH derivative tokens can convert 1:1 against ETH. With the current depeg situation of derivative tokens, it is not too difficult to understand that investors are FOMO in order to maximize their profits in the long term.
Besides, after The Merge APR of LidoDAO for stETH increased from 4% to 5% and Rocket Pool increased from 4% to 5.3% was also a stimulus factor for the market.
Smart Money flow into stETH accounts for a large volume of Smarter LP, Fisrt Move Staking, Smart Dex Trader. The exact amount may be more because these Smart Money bring their stETH to AAVE side to get astETH back to optimize profits.
Besides stETH, other derivative tokens of ETH are also being greatly increased in the wallets of Token Millionare and Smart Money.
Rocket Pool's rETH was also bought in a lot and took away a large amount of Stake in the Balancer.
CoinbaseETH (cbETH) was launched at the end of August, but the mechanism is different from the rest of the market by allowing 1:1 conversion between cbETH and ETH. This appeals to investors who want to take profit safely.
Compound also has its own Liquid Staking product, but it doesn't seem to be as attractive as the rest of the platforms.
The above is the information collected from On-chain data, investors can consider and allocate capital to find a reasonable position because ETH derivative tokens are a long-term investment. With strong fluctuations along with great influence from current macro events, it is likely that there will still be more corrections occurring.
The data in this article is collected from Nansen.ai and Dune.com