ETH - Why stETH Could Matter More than Ethereum Right Now
Much ado has been made of the recent collapse of Terra (CRYPTO: LUNA) , as well as the liquidity crunch that's ongoing at centralized crypto lender Celsius (CRYPTO: CEL) . The sell-off we've seen take place in the crypto world has undoubtedly been accelerated by the unraveling of two key players providing much of the "plumbing" of the cryptocurrency market.
However, the performance of Lido Staked Ether (CRYPTO: STETH) relative to Ethereum (CRYPTO: ETH) could be an undercurrent to the Celsius discussion that's perhaps more important metric for investors to watch. Today, both tokens have appreciated roughly in line, with STETH rising 5.8% over the past 24 hours, as of 12:30 p.m. ET. Likewise, Etheruem has risen 6.1% over this same time frame, continuing a trend of outperformance for Ethereum relative to Lido Staked Ether.
The de-coupling of stETH prices relative to ETH (with Lido Staked Ether trading at a roughly 6% discount to Ether) has remained in place over the past week. This decoupling took place following Celsius' note that it was pausing withdrawals, transfers, and swaps on its platform.
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Why stETH Could Matter More than Ethereum Right Now