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In the middle of a wider market crisis, staking vanilla ether (ETH) is providing crypto enthusiasts with eye-catching dividends. After the collapse of FTX, operations at centralized crypto lending companies such as Genesis and Circle were caught in the contagion risks. And withdrawals have been paused at Genesis, while yields on clients’ stablecoin deposits at Circle have dropped to 0%.
As Ethereum turns deflationary for the first time since its transition from proof-of-work to proof-of-stake, critics have started to highlight the Ethereum Foundation’s removal of Ether staking’s withdrawal schedule on social media.
Ether Staking
A crypto community member pointed out that previously Ethereum developers, leaders and influencers mentioned that ETH staking withdrawals will be enabled six months after the Merge, but then they moved the goalpost and it became 6-12 months and then 2024. But now, the ETH Foundation removes all the time frames from their websites.
On the other hand, another Twitter user described staked ETH as a non-redeemable crypto investment. And others started resembling the sentiment and criticized the withdrawal timeframe.
As every action has a reaction, after the criticism update, the Ethereum supporters came in the field to support and present their responses. Anthony Sassano, the co-founder of Ethereum resource site, ETHhub, showed his support to the network by brushing off the criticisms as attempts of Bitcoin maximalists to find other things to attack in Ethereum after being proven incorrect by the Merge.
In addition, Ethereum developer Antiprosynth cited the fact that all these criticisms are coming at a time when Ether’s market dominance rises and Bitcoin’s dominance goes down.
Decentralized Finance Market
In the decentralized finance (DeFi) market update, users are staking Staked Ether (stETH) at staking service Lido are earning as much as 10.7%.
An analysts at Delphi Digital said in a note that “Recently, the liquid staking protocol also had to increase rebasing oracle limits from 10% to 17.5% to let the increased rewards flow to stETH token holders.”
Additionally, as per the Galaxy Digital Trading co-head, Ethereum could flip Bitcoin in three years. Ethereum has been leading the crypto market’s most recent upswing, as the DeFi token looks to close the distance on Bitcoin.
DeFi market currently has a market cap of $38.40 Billion with 24h volume of $2.55 Billion and 13.51% volume change in the past 24 hours. And the DeFi lending and stablecoin protocol, MakerDAO, was hit hard by the crash in the previous week that wiped much of the crypto backing its dollar-pegged stablecoin off the market.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
