A look at the top performers over the past 24 hours reveals a trend that could trigger a boom among certain altcoins in 2023.We’re talking about Lido Finance (LDO), which has risen 7% in the past 24 hours and 17% over the past seven days, making it the 37th largest cryptocurrency by market cap.Lido Finance is a decentralized liquid staking application that allows users to generate additional yield for staking their assets.The application currently offers support for five cryptocurrencies: Ethereum (ETH), Polygon (MATIC), Solana (SOL), Kusama (KSM), and Polkadot (DOT).Of particular interest, however, is the first-mentioned altcoin, Ethereum.
As Thor Hartvigsen, blockchain and defi researcher, explained, Liquid Staking Derivatives (LSD) altcoins could see a boom in 2023 as the second largest cryptocurrency by market cap implements the Shanghai upgrade.Of all major layer-1 blockchains, Ethereum has the lowest staking ratio of only 14%.In contrast, 90% of all BNB, 72% of all ADA, 68% of all SOL, and 62% of all AVAX are staked.
The huge gap is likely related to the fact that ETH cannot yet be de-staked.However, the Shanghai hard fork planned for March will change that.While the analyst expects a major unstaking initially, the upgrade could trigger massive growth for liquid staking solutions in the long run.And Lido Finance (LDO) is currently the undisputed leader in the liquid staking of ETH, providing further rocket fuel for the LDO token.
Altcoins Poised To Skyrocket Based On The Narrative However, not only the LDO but rather small LSD altcoins could benefit from the new narrative.As anonymous analyst “Karl” says, numerous LSD solutions are poised to wobble at the throne of Lido Finance.Currently, LDO’s market share is about 65.62%, followed by Rocket Pool (3.10%), StakeWise (0.9%), Ankr (0.81%), Frax Finance (0.67%), and Stafi (0.25%).As the analyst assesses, the market caps of the altcoins Stakewise (SWISE) and Stafi (FIS) are still below $20 million, despite the fact that they control significant market share.
“[T]heir tokenomics aren’t the best though, as there is still a considerable portion of the supply to be unlocked as team/investors’ allocation and liquidity mining rewards,” the analyst added.A look at the market share/market cap ratio also shows that both SWISE and FIS tokens are close behind the market leader, poised for future gains.Also remarkable is Frax Finance, which recently entered the LSD landscape of altcoins and has already managed to capture a significant market share.Hartvigsen stated that in less than 2 months, Frax has managed to attract more than 45,000 ETH (about $55 million TVL).According to the analyst, there are “no signs of slowing down” as APRs are consistently at 9-10%, far outperforming any competitor.Frax Finance accomplishes this by giving users frxETH when they are either liquidity pooled on Curve (frxETH/ETH) or staked on Frax Finance (sfrxETH).“Only sfrxETH receives the ETH staking yield.This results in a higher APR as not all of the staked ETH is receiving the rewards as they are in the curve pool instead,” the analyst explained.
But Rocket Pool is also a prime candidate to grow from the new narrative due to its relative size, recent popularity growth, and several differentiators, Hartvigsen added.Two Potential Spoilers For LDO However, in the near term, there could be two spoilers in particular for the price of the Lido Finance token, LDO.Both Nansen and Chain EDGE on-chain data shows that “smart money” has been selling LDO rather than buying it, Twitter user @AvaxGems pointed out.I guess not all of us are bullish on LSD coins.
Both @nansen_ai and @ChainEDGE_io(by @OnChainWizard) showing “smart money” been selling $LDO rather than buying.pic.twitter.com/9k0nt0tHpG — rektGEMS🔺 (@AvaxGems) January 3, 2023 A second factor for LDO could be Alameda.
The ex-company of Sam Bankman-Fried sold 719,498 LDO on December 28, worth about $717,451, for 601 ETH, and currently still has 1.86 million LDO left, the equivalent of about $1.81 million.Featured image from Nasa / Unsplash, Charts from Messari, Twitter, TradingView.com No less than three renowned crypto institutions have recently given their predictions for the coming year 2023 – and there seems to be one favorite: Ethereum.Other main themes for Coinbase, Darma Capital, and Cumberland include the migration of investors to quality projects, the burgeoning innovation from creative destruction, and some fundamental reforms for the crypto industry as a whole.The largest U.S.cryptocurrency exchange, Coinbase, estimates that crypto markets will not yet decouple from traditional financial markets in early 2023, with investors focusing on quality projects with sustainable tokenomics and mature ecosystems with liquidity.Coinbase Predicts Ethereum Ecosystem To Flourish Coinbase also predicts that the market for layer-1 competitors to Ethereum is oversaturated and that the coming year could be the year of layer-2 blockchains.
Thus, Ethereum’s competitors will have a tough time, according to Coinbase.While ETH and the Binance Smart Chain (BSC) will hold up well, TVL will migrate to layer 2 solutions such as Polygon, Optimism, and Arbitrum.Coinbase also predicts another boom for NFTs, which will see an evolution to integration with personalized IDs, ticketing, subscriptions, real-world assets (RWA) tokenization, and supply chain logistics.In addition, more companies will integrate NFTs for brand building and customer engagement.
As a result of human error in the demise of FTX and other projects in 2022, the American exchange expects regulatory clarity to be critical to the next cycle.Perhaps surprisingly, to some, Coinbase also says institutional lending will sprout and flourish in 2023 with improved due diligence processes – once the bottom is reached.As for the largest cryptocurrency by market cap, Bitcoin, Coinbase predicts that Mt Gox distribution will not be the big event in 2023, as some analysts claim.Those who wanted to sell have already sold.Moreover, the distributions will be staggered.
With regards to Ethereum, Coinbase shares a bullish outlook due to the Merge.ETH is able to be more efficient as a result of the move to proof of stake and is also deflationary.Moreover, the U.S.
exchange predicts that the amount of liquid ETH will continue to decline once withdrawals from the deposit contract are possible after the Shanghai hard fork.
Darma Capital Predicts ETH To Outperform Bitcoin Just like Coinbase, Darma Capital views the Ethereum Merge as a key development that will have a positive impact on the ETH price.The same goes for the Shanghai hard fork, which will lead to increased ETH staking.On a technical level, Darma sees proto-danksharding as a game-changer for ETH, while it expects innovations from Lido Finance and Obol Network.Fundamentally, Darma predicts that L2s will be key to adoption by the next wave of consumer-facing applications, mentioning Arbitrum, Optimism, and Immutable.“Vaporwave Chains” like EOS and Cardano will die out as they lose mainstream interest due to lack of on-chain adoption, Darma says.The forecast for Bitcoin is not rosy either.According to the institution, BTC will lose market share to altcoins while Ethereum will accomplish the “flippening.” Responsible for this, according to Darma Capital, could be a lack of utility, ESG concerns, and a “failure as a digital gold.” In general, the digital asset risk management advisor expects that the macroeconomic situation will result in a freeze on interest rate hikes by the U.S.
Federal Reserve until the second quarter of 2023.Consequently, the crypto market will see another bull run in Q3 2023.Three Emerging Narratives Cumberland DRW LLC expects challenging market conditions and clear regulatory frameworks in 2023 that will lead to innovative solutions.With this in mind, retail investors will focus on exchanges that can score with transparency, spot trading without prefunding, ISDAs & CSAs, the institution says.
As three emerging narratives, the company identifies Bitcoin and Ethereum as reserve currencies, NFTs for IP tokenization, loyalty programs, and customer engagement, specifically citing MATIC, LOOKS, XMON, and GameFi.At press time, the Ethereum (ETH) price stood at $1,218.Featured image from Moritz Knoringer / Unsplash, Chart from TradingView.com 2022 US Central Bank Raises Rates By Half A Percentage Point, Fed’s Powell Says Similar Hikes Are On The Table The U.S.Federal Reserve raised the benchmark interest rate on Wednesday and the increase was the biggest rate hike in two decades.
“Inflation is much too high,” the central bank’s chair Jerome Powell said after the Fed raised rates by 0.5%.FOMC Decides to Hike Rate by 3/4 to 1% — Increase Was the largest Rate Hike in 2 Decades – On May 4, 2022, the U.S.central bank raised the benchmark interest rate in order to curb rising inflation.The Federal Open Market Committee (FOMC) explained on Wednesday in a press release that the 12 FOMC members “decided to raise the target range for the federal funds rate to 3/4 to 1 percent.” – The Federal Reserve also said the central bank “anticipates that ongoing increases in the target range will be appropriate.” Additionally, the FOMC statement issued at 2:00 p.m.(ET) said that the Ukraine-Russia war and the Covid 19-related lockdowns in China have made “implications for the U.S.economy highly uncertain.” – Speaking to reporters after the FOMC decision, Fed chair Jerome Powell said: “Inflation is much too high and we understand the hardship it is causing and we are moving expeditiously to bring it back down.” The central bank’s chief added that there was “a broad sense on the committee that additional 50 basis-point increases should be on the table for the next couple of meetings.” – The May 4, 3/4 to 1 percent increase is the second rate hike in 2022 after the Fed raised the benchmark rate on March 16, 2022.At that time, the Fed raised the interest rate from near zero to 0.25% in order to target 0.25% and 0.50% – The FOMC statement further added that the United State’s economic activity had “edged down in the first quarter” and stressed that the “[inflation] remains elevated.” – In addition to the rate hike, the Fed plans to taper back its Treasury securities and mortgage-backed securities spending.- “The committee decided to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities on June 1, as described in the Plans for Reducing the Size of the Federal Reserve’s Balance Sheet that were issued in conjunction with this statement,” the FOMC statement concluded.
– Despite the rate increase, crypto markets were positive on Wednesday as the crypto economy rose 5.7% over the last 24 hours.The price of bitcoin (BTC) jumped 5.6% higher and ethereum (ETH) spiked by 6.5% against the U.S.dollar.- Furthermore, stocks rallied as well on Wednesday afternoon, as the top U.S.
stock indexes (NYSE, Dow Jones, Nasdaq, S&P 500) saw significant gains.For instance, the Dow Jones Industrial Average jumped over 900 points on the bet that the central bank’s move was a correct one.
Tags in this story 2022, 2023, Bank Rate, Central Bank, Covid-19 pandemic., Crypto, Cryptocurrencies, DOW, Economy, Fed, Fed Chair Jerome Powell, Federal Reserve, FOMC, FOMC Meeting, gold, inflation, Interest Rate Hike, jerome powell, nasdaq, NYSE, pandemic, price pressures, Rate Hike, US Central Bank, US economy What do you think about the Federal Reserve raising the benchmark interest rate by 3/4 to 1%? Let us know what you think about this subject in the comments section below.Jamie Redman Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida.Redman has been an active member of the cryptocurrency community since 2011.He has a passion for Bitcoin, open-source code, and decentralized applications.Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.Image Credits: Shutterstock, Pixabay, Wiki Commons On Wednesday, the Federal Open Market Committee (FOMC) and Fed chair Jerome Powell held a press conference concerning the American economy, the central bank’s plans to address inflation, and the ongoing Russia-Ukraine war.
Powell announced that the FOMC decided to increase the benchmark bank rate by a quarter percentage and further noted the Fed anticipates “ongoing increases…will be appropriate.” Federal Reserve Increases Benchmark Bank Rate For the first time since the onset of the Covid-19 pandemic, the Federal Reserve announced that it increased the benchmark interest rate from near zero to 0.25% in order to target 0.25% and 0.50%.Fed chair Jerome Powell revealed the rate hike on Wednesday after mentioning the Russia-Ukraine ongoing conflict and he stressed that “the implications for the U.S.economy are highly uncertain.” However, after mentioning that the U.S.economy, particularly the jobs sector was showing strength, Powell quickly explained that the FOMC raised the benchmark bank rate by a quarter percentage and highlighted that “ongoing increases…will be appropriate.” Powell also discussed tapering back the Fed’s purchase program but noted that details on that particular arrangement would be disclosed at a later meeting.
The last time the Fed raised the benchmark bank rate was in December 2018 well before the Covid-19 pandemic.The Fed’s post-meeting statement also discussed reducing the U.S.central bank’s balance sheet at the next FOMC meeting.“The committee expects to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities at a coming meeting,” the post-meeting statement details.
In addition to the quarter percent increase, the FOMC expects an additional six rate hikes at each and every FOMC meeting.Moreover, the central bank also expects to increase rates an additional three times next year.“The committee is determined to take the measures necessary to restore price stability.The U.S.economy is very strong and well-positioned to handle tighter monetary policy,” Fed chair Jerome Powell detailed during his press conference statements.Federal Reserve Says US Inflation Remains Elevated After the rate hike, the economist and gold bug Peter Schiff tweeted about the Fed’s move.
“The only reason the Fed hiked rates is inflation,” Schiff said.“Prior to admitting inflation wasn’t transitory, the Fed wasn’t planning any rate hikes in 2022.Given current geopolitical risks and weakness in the economy and financial markets, the Fed just ran out of excuses to stay at zero.” The U.S.central bank did in fact admit to inflation remaining high in post-meeting statements.“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures,” the FOMC rate hike announcement explains.Meanwhile, the popular U.S.indexes Nasdaq, Dow Jones Industrial Average, NYSE, and S&P 500 all remained in green after the FOMC rate hike announcement.
Crypto economy markets further remained consolidated, after a brief jump during the early morning trading sessions on Wednesday (ET).The crypto economy is still up 1.2% in the last 24 hours, following the FOMC statements.The price of one ounce of .999 fine gold is down 0.17% during the last 24 hours.
At press time, one ounce of gold is exchanging hands for $1,914 per ounce, down 7.08% since the asset’s recent $2,060 all-time high.Tags in this story 2022, 2023, Bank Rate, Central Bank, Covid-19 pandemic., Crypto, Cryptocurrencies, DOW, Economy, Fed, Fed Chair Jerome Powell, Federal Reserve, FOMC, FOMC Meeting, gold, inflation, Interest Rate Hike, jerome powell, nasdaq, NYSE, pandemic, Peter Schiff, price pressures, S&P 500, US Central Bank, US economy What do you think about the Federal Reserve raising the benchmark interest rate for the first time since 2018? Let us know what you think about this subject in the comments section below.
Jamie Redman Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida.Redman has been an active member of the cryptocurrency community since 2011.He has a passion for Bitcoin, open-source code, and decentralized applications.Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only.
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Bitcoin.com does not provide investment, tax, legal, or accounting advice.Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Top posts Celsius Network1 hour ago Celsius Network owns customers $4.2 billion crypto, Judge rules Celsius Network has just won ownership of the $4.2 billion worth of crypto deposited by its customers, according to WSJ….
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