While liquid staking protocols experienced a brief period of withdrawals, the past 12 days have seen liquid staking derivatives (LSDs) platforms gain 110,000 ether valued at 7.59 million. Swell Experiences Decline as Lido and Others See ETH Increases In the realm of decentralized finance (defi), liquid staking derivatives (LSDs) have finally recorded positive deposits after […]
Bitcoin News
Liquid Staking Market in Flux: Withdrawals Hit Swell and Mantle, Reshuffling Landscape
Over the past 18 days, 27 distinct liquid staking derivatives (LSD) protocols have experienced withdrawals amounting to approximately 50,000 ether, valued at 6.72 million. The most significant reductions occurred in the LSDs Swell and Mantle, with Swell’s ether holdings decreasing by 23,078 ether since April 28, 2024. LSD Protocol Reductions Continue Despite Minor Gains for […]
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Liquid Staking Platforms See 60,000 ETH Outflow in 2 Weeks; Lido Dominates Reductions
In the last two weeks, liquid staking derivative (LSD) protocols have experienced a decline of 60,000 ether valued at over 8 million, with Lido accounting for 40,000 of the ETH withdrawn. LSD Sector Snapshot: 8 Million Ether Withdrawn in 2 Weeks Liquid staking has been witnessing a decrease; on April 15, 2024, the 27 distinct […]
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BNB Announces Native Liquid Staking Addition in BSC
BNB Chain, one of the largest smart contracts-enabled ecosystems in the crypto environment, has announced the inclusion of native liquid staking in its BSC blockchain. The new feature aims to allow validators to secure the network and maintain the liquidity of its assets while the ecosystem abandons the Beacon chain. BNB Chain Evolves Into a […]
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Liquid Staking Derivatives Lose Ground With Over 380,000 ETH Withdrawn in April
Following a significant downturn in March, liquid staking derivatives (LSD) protocols experienced another withdrawal of 380,000 ether, valued at roughly .17 billion, from leading LSD platforms since April 1, 2024. Ethereum Exodus: .17 Billion Pulled From LSD Platforms In the initial two weeks of April, a notable reduction of 380,000 ether was observed in the […]
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In 22 Days, Liquid Staking Platforms Witness a 340,000 ETH Decline
According to the most recent data, within the last 22 days, the volume of staked ether locked across various liquid staking derivative token platforms has seen a decline of 2.45%. This downward trend was observed across 27 unique platforms, culminating in a reduction of 340,000 ETH, valued at approximately .18 billion. .18 Billion Worth of […]
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Prisma Finance Suffers $11.6M Hack in Liquid Staking Shockwave, Moves to Mitigate Fallout
The decentralized finance (defi) entity, Prisma Finance, has fallen prey to a security breach, with onchain detectives revealing that .6 million has been pilfered from its liquid staking protocol. Prisma Finance in Turmoil: .6M Lost to Hackers, Emergency Measures Activated On a recent Thursday, blockchain surveillance and safety squads from Peckshield and Cyvers reported the […]
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Bitcoin “Liquid Inventory Ratio” Hits All-Time Low, What It Means
On-chain data shows the Bitcoin “Liquid Inventory Ratio” has dropped to an all-time low. Here’s what this could mean for the asset.
Bitcoin Sell Side Liquidity Is Low Relative To Demand Right Now
In a post on X, CryptoQuant founder and CEO Ki Young Ju discussed the recent trend in the Liquid Inventory Ratio for Bitcoin. The Liquid Inventory Ratio is an on-chain indicator that tells us about how the total sell-side liquidity inventory of the asset compares against its demand.
The sell-side liquidity inventory of the asset is gauged using four factors: the total exchange reserve, miner holdings, OTC desk holdings, and US government-seized BTC.
Out of these, the exchange reserve (that is, the total amount sitting in the wallets of centralized exchanges) is the largest potential source of sell-side liquidity.
The chart on the right below shows how the sell-side liquidity inventory of the coin has changed over the last few years:
From the graph, it’s visible that the sell-side liquidity of the cryptocurrency has been heading down for a while now. This decline is mostly driven by the depletion of exchange reserves, as investors have been continuously pushing towards self-custody, possibly preferring to hold onto their Bitcoin for extended periods.
The chart on the left displays the trend in the total demand for the asset. Here, the demand is measured using the 30-day balance changes of “accumulation addresses.”
The accumulation addresses are those that have a history of only buying BTC and no history of selling. Exchanges and miner entities are excluded from this cohort, of course, as they count under the sell-side liquidity instead, regardless of whether they satisfy the condition for accumulation addresses or not.
Clearly, the demand for Bitcoin has exploded recently as new players like exchange-traded funds (ETFs) have entered into the arena. All this BTC is potentially going out of circulation and being locked into the wallets known for hosting a one-way traffic.
Given these two developments in the sell-side liquidity inventory and demand, it’s not surprising to see that the Liquid Inventory Ratio, which measures the ratio between the two, has plunged recently.
Following the latest decline in the indicator, its value has, in fact, dropped to a new all-time low. This means that the sell-side liquidity has never been this low when compared to the demand for Bitcoin.
Given this trend, it will be interesting to see how the BTC rally plays out from here, as the supply available to buy is only continuing to tighten.
BTC Price
Bitcoin had seen some drawdown earlier, but bullish winds have seemingly returned for the coin as its price has now recovered back above ,200.
Ether Locked in Liquid Staking Platforms Skyrockets to $54.34B With a $26.85B Rise in 64 Days
The volume and worth of liquid staking derivatives (LSDs) have expanded significantly since the beginning of the year, with 1.56 million ether being added to LSD protocols since Jan. 6. The total value of ethereum stored surged by .85 billion in the last two months. LSD Market Flourishes: Ethereum Holdings Cross Billion Milestone In […]
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Bitcoin Is Akin to a ‘Liquid Collectible’ Says DOT Activist Giotto De Filippi
The quality of a meme coin’s distribution is what determines if it has staying power or not, Giotto De Filippi, the co-founder of NFT Juice has said. De Filippi, an activist for Polkadot’s crypto token DOT, suggested that only a few meme coins owe their success to a “very good distribution” which he said takes years to build.
Many Meme Coins ‘Pumped Artificially’
However, De Filippi opined that many of the meme coins “seem more like pump and dumps” with dogecoin (DOGE) being one of the few exceptions. He also identified Shiba Inu, PEPE, and BONK as meme coins that may have been “pumped artificially.”
Meanwhile, in his written answers sent to Bitcoin.com News, De Filippi described meme coins as some form of liquid art or collectible. De Filippi argued that bitcoin, which is the largest crypto asset and most popular, fits the description of what he calls a “liquid collectible.”
When asked how investors can avoid falling prey to meme coin scammers, the DOT activist warned prospective holders to be on the lookout for meme coins with concentrated distribution. Such distribution, he argued, is a red flag which should force them to think before deciding to invest.
Below are Giotto De Filippi‘s answers to questions sent to him via Telegram.
Bitcoin.com News (BCN): What are meme coins what would say distinguishes them from other crypto tokens?
Giotto De Filippi (GDF): I would say many coins are basically a liquid collectible. It’s a form of art, it’s a collectible, but it’s liquid. So instead of being like a statue, it’s kind of a liquid statue or whatever. Or instead of a painting, it’s like a liquid painting. But really bitcoin (BTC) is a meme coin. It’s like bitcoin doesn’t do anything.
So the value of a meme coin is in its distribution and people who like it, I mean in the end, bitcoin is a liquid collectible. Bitcoin holders are bitcoin collectors. They collect bitcoin, they collect something liquid – or gold are gold collectors. Gold has no interest value. Bitcoin has no interest value. Bitcoin is a meme coin. And what makes the difference is the quality of distribution and the branding, which is done through marketing or history like bitcoin.
So it’s a liquid collectible and what separates one from another is the quality of the distribution.
BCN: Whether it’s DOGE, Shiba Inu, PEPE or more recently BONK, interest in meme coins has grown rapidly in the last few years. In your opinion, are they just a fad or something that would stay relevant in the long run?
GDF: It depends on the quality of the distribution. Dogecoin has probably a very good distribution because it developed over many, many years. So, dogecoin has some sustained power. The other ones seem more like pumps and dumps, but that’s just my opinion. In DED, we want to also have a very good quality of distribution. We want to be more like Doge rather than Shiba, Pepe, or Bonk because it seems more like they have been pumped artificially. But again, I cannot prove it. That’s just my opinion.
BCN: Meme coins are seen by some as speculative investments that hold little to no intrinsic value. Besides the possibility of outsized returns or losses, can you talk about the psychology of why some crypto users get hooked to meme coins?
GDF: Bitcoin holds no interesting value. Art holds no interesting value. They are collectibles and liquid collectibles, and people buy them for many reasons. Maybe because they like it, or because they think it’s funny, or because they think the price will go up. I mean for a million possible reasons, everyone has a different reason for doing something.
BCN: The Polkadot community members have created the first meme coin of the Polkadot network, the DED coin. Can you talk about what DED is and why the community created a meme token movement around Polkadot being dead?
GDF: There is no why. It’s more about the community. I encourage them in the sense that if someone comes up with a good concept, I will vote yes for the marketing proposal. But everything happened organically. There is no “why” when something happens organically, it just happened.
BCN: How is DED different from the hundreds of other meme coins out there and what do you think sets it apart from similar coins?
GDF: What sets it apart is the fairness of the distribution. The fact that it has a very fair distribution means it won’t lead to dumping and that we could raise the money without having to compromise. So we can raise the money from the treasury without having to compromise on the distribution. The others, they cannot do that.
BCN: Recently, the Avalanche Foundation said that it would buy meme coins as part of a culture drive that recognizes the distinct niches of the cryptocurrency market. In what ways do memes recognize and encourage culture?
GDF: I’m not sure. I mean culture can mean a lot of things. I guess DED is a joke about how Polkadot is dead and it kind of proves that it’s false. So it’s kind of part of the DOT culture.
BCN: According to Coinmarketcap data, there are over a thousand coins listed in the meme coin section. A large number of them are worthless. What are the most common red flags that traders should look for before putting their money into meme coins?
GDF: The main red flag is the distribution. If the distribution is poor, it’s very concentrated. It’s probably a scam.
Do you agree with Giotto De Filippi’s views on meme coins? Let us know what you think in the comments section below.