Growing Demand for Liquid Staking (LIDO) Reshaped both Use of ETH and Pace of Ethereum Issuance Itself

According to Glassnode, the uptrend in stETH adoption is unmistakably underway, which poses an increasing challenge to traditional demand for ETH itself, which is experiencing stagnant demand due to declining numbers of new altcoin ICOs/IDOs.

stETH is increasingly employing ETH as a favored asset on cryptocurrency lending platforms. This trend is being built mainly due to the attractiveness of leveraged stETH positions, which seem to offer more appealing returns compared to providing liquidity via stETH-ETH pairs on decentralized exchanges.

However, over the past week, so far, Lido Staked ETH has earned only a ‘Neutral’ rating on the InvestorsObserver Sentiment Score. The Sentiment Score measures the performance of Lido Staked ETH over the past 5 days by volume and price movement.