🔒Ethereum liquidity re-staking amount skyrockets, with TVL exceeding $17 billion in 2024!
The total locked value (TVL) of Ethereum's liquidity re-staking protocol has skyrocketed this year, reaching an all-time high! The TVL has grown from around $284 million at the beginning of the year to $17.26 billion now, an increase of nearly 60 times. This significant growth highlights the ongoing expansion and vitality of the Ethereum ecosystem.
Despite the strong growth momentum in Ethereum's fundamentals, this positive performance has not yet been fully reflected in market prices. Since the approval of the Ethereum ETF in July, the market has not experienced a widespread speculative frenzy. The hype around institutional Ethereum spot ETFs may not have truly begun yet, and once it does, it could significantly impact Ethereum's price.
There is a view that once this hype truly arrives, Ethereum's price has the potential to double or even break the $10,000 mark. Because Bitcoin reaching $100,000 is an important milestone, Ethereum reaching $10,000 could become another significant milestone. In this context, it might be a key moment for investors to seize the opportunity for strategic positioning.
When discussing Ethereum liquidity staking, it is often found that its risks and returns do not necessarily correlate proportionally. Taking Ethereum's Lido mining pool staking as an example, if one does not have 32 Ethereum to run their own node but still hopes to earn staking rewards, they can stake through Lido, the largest liquidity mining pool for Ethereum. In the Lido pool, staking Ethereum will be exchanged 1:1 for stETH tokens, and one can also earn POS staking rewards. At this point, you can also use stETH to participate in staking in other DeFi ecosystems, thereby earning more rewards.
However, this staking operation also has its drawbacks. You need to invest your tokens into projects that may not be mature, and although the annual percentage rate (APR) appears high on the surface, there are significant risks behind it.
Therefore, if you are confident in the liquidity staking business, ensure that you fully understand the associated risks before making any investment decisions regarding participation in staking.
