Projects that provide liquid staking services have become widespread with the transition of Ethereum to the Proof-of-Stake system.
Since the first days of 2023, significant increases have been seen in crypto money projects that have been providing liquid staking services. While the crypto market is stagnating, altcoins that promise liquid savings to their users have all gained in value from 18% to 57% in the last week.
Liquid Staking projects issue a tokenized receipt that users can use to trade, to ensure liquidity of cryptocurrencies locked into the network to generate income from proof-of-stake. If you want to both stake and trade with the Ethereums you have, Liquid Staking projects come into play. Today, 7 different projects operating in this field have altcoins. Lido Finance (LDO), the largest cryptocurrency in the industry with its market share, gained all the attention by gaining 58% in a week. LDO, which fell to $0.45 in the summer months, is currently trying to exceed the $2 psychological limit.
The biggest reason for the rise in altcoins of liquid staking projects is an upcoming new update in Ethereum. In the past hours, upward movements came with the confirmation that the Ethereum Shanghai update will take place in March 2023.