Crypto analyst Dylan LeClair took to Twitter about the instability of staking Ethereum tokens, which currently signals a LUNA-like disaster.
Stake Ethereum tokens look like LUNA disaster
Dylan LeClair shared analysis of the Lido Staked ETH (stETH) imbalances currently visible in the ecosystem in his tweets dated November 25.
According to the post, stETH has once again started trading on Ethereum (ETH) itself at a discount. This level was unstable during the most recent Terra USD (UST) disaster.
In addition, the stETH share of the Curve stETH/ETH pool increased to 69%, showing a notable imbalance. LeClair concludes his article by stating that these figures are an issue that investors should pay attention to.
Widening the difference between stETH and ETH
According to CoinMarketCap, Lido Staked ETH (stETH) dropped 1.12% at one point yesterday. Meanwhile, it was trading at $1,159.99. STETH also dropped as low as $1,147.99 and $1,179.90 in the same timeframe. In terms of weekly performance, it lost more than 2%. Currently, Ethereum is down around 0.77% and is priced in the green at the same rate.
How about Ethereum?
Santiment tweeted that addresses holding 100 to 100,000 ETH recently bought ETH drops. In fact, whales are now accumulating larger amounts of ETH. The platform also revealed a 50% price increase on the charts the last time whales accumulated this much ETH. Now, while whales seem to be aggressively accumulating Ethereum, it is not yet clear whether individual investors will do the same.
https://twitter.com/santimentfeed/status/1595534440419188751
However, at the time of writing, active addresses on Ethereum were falling. As you can see, the number of active addresses has dropped significantly in the last few months. In fact, according to Glassnode, the number of active addresses reached 25,916, the lowest level in 2 years. However, the number of lost addresses has also reached an all-time high. This showed that most people holding Ethereum would not be making a profit if they sold their ETH at this point.
Despite the FUD and price drop, Ethereum validators continue to support Ethereum. In fact, the number of validators on the Ethereum network has increased by 5.51% over the past 30 days. Currently, there are more than 474,000 validators in the network. These validators continued to show their faith in Ethereum despite their declining revenues. According to Staking Rewards, revenue generated by Ethereum validators has decreased by 5.48% over the past 30 days. It is not yet clear whether these validators will continue to be on the Ethereum network.
Also, Ethereum’s network growth has witnessed an uptick over the past few days. This shows that the number of new addresses transferring ETH for the first time has increased over the past few days. Along with that, Ethereum has also recorded an increase in volume. Its volume, which was 5.54 billion on November 20, increased to 11.27 billion on November 24. As you can follow on Kriptokoin.com, some whales preferred to sell at this time.
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