Highly successful cryptocurrency traders have been staking their ether (ETH) on the Rocket Pool decentralized node operator network and offloading ENS, according to data from blockchain analytics firm Nansen.
In the past 24 hours, $1.37 million worth of rETH has flowed into wallets categorized by Nansen as “smart money,” more than any other token tracked by the firm.
Nansen considers a wallet to be “smart money” if it meets at least one of several conditions, including:
It is known to belong to an investment fund.
It has made at least $100,000 by providing liquidity to decentralized finance (DeFi) protocols, SushiSwap and Uniswap, excluding so-called impermanent loss.
It has made multiple profitable trades on a decentralized exchange (DEX) in a single transaction, through mechanisms such as “flash loans”.
(CoinDesk Research, Nansen)
ETH is an ERC-20 token people receive for depositing ETH into Rocket Pool’s decentralized Ethereum staking protocol. Instead of staking the full 32 ETH required to run an Ethereum proof-of-stake validator, participants can contribute as little as 0.01 ETH to Rocket Pool and earn a share of its validator rewards. Smart Money inflows of rETH reflect the popularity of staking ETH among crypto traders, investors and institutions.
Of the 12.31 million ether locked in the Beacon Chain staking contract, 169,216 ETH comes from Rocket Pool, while 3.97 million ETH stems from Lido, Rocket Pool’s key competitor. CoinDesk’s Sam Kessler has written that Lido “might be on track to control over 50% of all staked ether,” which for some is a good reason to raise alarm bells given the risk of centralization. With rETH entering smart money addresses, the competition in the fast-growing liquid staking market is rising.
Over the same 24-hour period, roughly $5.9 million worth of ENS has left smart money wallets, the biggest outflow among tokens tracked by Nansen. Outflows are considered a bearish signal. Since 10 a.m. UTC Tuesday, ENS prices have dropped 11.89% using data from CoinGecko.
(CoinDesk Research, Nansen)
ENS is the governance token for the Ethereum Name Service where one token represents one vote. Token holders are encouraged to use ENS and participate in the community by choosing a representative to control their votes or by using their ENS to vote directly on a given proposal. Early last month, the ENS decentralized autonomous organization (DAO) voted on whether to remove Brantly Millegan, one of the three directors of the Ethereum Name Service Foundation, for his homophobic and transphobic tweets in the past. Active for a week, the vote to remove Millegan failed.
Yuga Labs’ Otherdeed for Otherside continues to dominate the non-fungible token (NFT) ecosystem. It led all other NFT collections for the second consecutive day as the most actively traded collection in the last 24 hours. Coming in second is Mutant Ape Yacht Club, followed by Bored Ape Yacht Club, two projects also created by Yuga Labs.
(CoinDesk Research, Nansen)
Given the historic highs for gas fees across the Ethereum network due to the high demand for the Otherside “virtual land sale,” Yuga Labs indicated in a tweet Sunday that Otherdeed minters with failed transactions will be refunded. Moreover, the company suggested ApeCoin DAO should start thinking about building its own dedicated blockchain to properly scale large NFT projects.
All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.
Follow us on Telegram
Stay updated of all the news
Cardano network’s Charles Hoskinson warns traders against AI token scams ahead of Apple developer conference
Charles Hoskinson, the founder of Cardano, has warned the crypto trading community against scams. With market participants watching the upcoming Apple 2023 WWDC lined up for Monday, there is a rally in artificial intelligence-based (AI) tokens.
Terra LUNA Classic price on the rise as Montenegro court approves Do Kwon’s second bail request
Terra LUNA Classic price yielded double-digit gains overnight for holders. LUNC price rallied in response to the recent development in Do Kwon’s bail request. The next hearing in Kwon’s case is June 16.
Pro-XRP attorney says Ripple has 25% chance of winning against SEC, Judge could announce verdict by September
Ripple has a 25% chance of winning its legal battle against the US Securities & Exchange Commission (SEC), according to pro-XRP attorney John Deaton. Over the weekend, Deaton shared his opinion on Ripple’s likelihood of both an outright win and a partial victory.
Why Solana price is primed for 30% rally
Solana price shows quite a few developments on the daily chart, all of which point to a bullish future for SOL holders. Investors can expect a quick run-up, which could develop into a medium-term uptrend if these optimistic conditions remain bullish.
Bitcoin: BTC targets $30,000 as short-term bias turns bullish
Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.