Home Cryptocurrency Messari Analyzed The Impact Of The Percentage Of Total Tokens Staked Over...

Messari Analyzed The Impact Of The Percentage Of Total Tokens Staked Over Price

  • Over the last few years, staking has been a popular trend in the digital currency market. With the launch of the aristocrats, Cosmos and Tezos, increase of staking services and propaganda by the long-awaited Ethereum upgrade made to the conclusion that proof-of-stake (PoS) can be the next development of consensus mechanisms.
  • In order to find out the impact of the token percentage stake over price, Messari analyzed the correlation between the percentage of liquid supply stake and price return YTD.
  • Regardless of the lack of a fixed trend, the entire staking protocols having less than 40% of its liquid supply staked are bottom in price this year.

Over the last few years, staking has been a popular trend in the digital currency market. With the launch of the aristocrats, Cosmos and Tezos, increase of staking services and propaganda by the long-awaited Ethereum upgrade made to the conclusion that proof-of-stake (PoS) can be the next development of consensus mechanisms.

Percent of supply staked compared to change in price YTD

However, some investors have represented this theme by placing bets on specific networks and staking their holdings and looking for inflation rewards. The staking incentives and token cases are different from the protocols. Also, we can find a variation in the total number of tokens staked on a network at a given time.

In order to find out the impact of the token percentage stake over price, Messari analyzed the correlation between the percentage of liquid supply stake and price return YTD.

Regardless of the lack of a fixed trend, the entire staking protocols having less than 40% of its liquid supply staked are bottom in price this year.  On the other side, the two networks with the showing the highest staking totals found the most substantial price drop YTD.

Staking can decrease the token velocity

While in some cases, staking can decrease the token velocity that means, the rates at which the funds are exchanged are reduced. This can further have the secondary impact of declining sell pressure.

The price movements depicted in the graph are in a close relationship with project-specific announcements as well as the overall direction of the entire market. Dash announced that it is aiming to increase network utility with the launch of on-chain contracts.

Download our App for getting faster updates at your fingertips.

en badge web generic.b07819ff

Priyanka Kulkarni
Priyanka Kulkarni, post-graduated in Business Administration holds worthy experience in market research and investment banking. She is passionate to flaunt her perception towards cryptocurrencies.

We Recommend

Top Rated Trading Platforms

Top Rated Cryptocurrency Exchange

Partners

Must Read

Digital change is essential however we don’t uphold private cryptocurrencies- German Finance Minister

Germany's Finance Minister Olaf Scholz has referenced secretly given cryptocurrencies resources.The European Union (EU), including Germany, is quickening innovative work on the...

Utilizing blockchain to screen the COVID-19 vaccine supply chain

Blockchain offers a changeless, decentralized information base that can enable all gatherings to ensure that antibody supplies are being put away and...

Leaked Citibank details Reveals Bitcoin Could Rocket To $300,000 Price By End Of 2021

Bitcoin has detonated in the most recent couple of weeks, adding to increases through 2020 that is seen more than twofold in...

Airbnb plays blockchain popular expression bingo in $ 1B IPO documenting with SEC

Crypto firms are genuinely attempting to restore the gravely hit travel area utilizing conveyed record innovation. The record rolls out an elite of...

The Cryptocurrency Mining Equipment market is skyrocketing

Stratagem Market Insights added an overview of the Cryptocurrency Mining Equipment MarketThe insider report covers various aspectsDifferent methodology to study the competitive...

Bitcoin Cash Under Pressure Slips -0.95% After Split Into Two Blockchains While BCHA Emerges as Positive Performer

Bitcoin Cash builds the Symmetrical triangle pattern, on daily chart faced rejection from the resistance and bounces from the support line  The pair...

Related News

Digital change is essential however we don’t uphold private cryptocurrencies- German Finance Minister

Germany's Finance Minister Olaf Scholz has referenced secretly given cryptocurrencies resources.The European Union (EU), including Germany, is quickening innovative work on the...

Airbnb plays blockchain popular expression bingo in $ 1B IPO documenting with SEC

Crypto firms are genuinely attempting to restore the gravely hit travel area utilizing conveyed record innovation. The record rolls out an elite of...

The Cryptocurrency Mining Equipment market is skyrocketing

Stratagem Market Insights added an overview of the Cryptocurrency Mining Equipment MarketThe insider report covers various aspectsDifferent methodology to study the competitive...

Brazilian Indigenous Tribes Neglected by the Government

Jair Bolsonaro, The President of Brazil, is known for looking down on its indigenous people. He is racist and discriminative towards themHe...

ZebPay to Dispatch India’s non-fungible Crypto Token and Commercial Center

A non-fungible token (NFT) is a cryptographic symbolic that speaks to something exceptional and has singular qualities that set them apart. The distinction...