Upcoming Ethereum update stimulates liquid staking token growth
Liquid staking token s (LSTs) have begun to pick up momentum this month as the second half of the year edges closer toward a highly anticipated Ethereum upgrade. Dubbed Cancun-Deneb (or “Dencun” for short), the upgrade — expected sometime in the fourth quarter of this year — will see the introduction of a mechanism known as “blob-carrying transactions.” Liquid staking providers, especially Lido, have gained significant traction, underlining users’ preference for greater liquid ity and flexibility in their staking activities, blockchain analytics firm Glassnode wrote in a research note on Monday. As such, protocols and assets linked with staked ETH are delivering outsized gains when compared to other major digital assets in the market on the week. As of 5 am ET, the governance token for liquid staking solution Lido DAO (LDO), has jumped about 11% and 24% on 1-week and 2-week timeframes respectively. Frax Share (FXS) — the governance token of the Frax ecosystem responsible for ...