Ethereum Is Trading At A Discount, But There Are Some Risks
Stacked Ethereum tokens by Lido Finance continue to be a popular instrument among Ethereum stackers who are willing to be more liquid on the market using tokens issued in relation to Stacked coins. During periods of high volatility, the price of STETH may drop below certain thresholds against ETH, which some investors use as an arbitrage opportunity.
According to market data, stETH has once again slipped at a discount to ETH, reaching a value of 0.97, which puts it at a 3% discount to “real Ethereum”. Investors haven’t seen SETH hit such a low since UST exploded.
Meanwhile, Ethereum’s share on the stETH/ETH Curve pool has reached 69%, which could be a sign of the pair’s stabilization in the future. However, every arbitrage opportunity on the market brings with it significant risk for traders.
The separation of STETH is an unhealthy sign for every Lido DAO participant. The most likely reason behind the decoupling may be related to the most recent controversy in the Ethereum validators community, which has resulted in yet another postponement of the Stake ETH unlocking timeline.
At this point, it is unclear when users will be able to get their Ethereum back from locked contracts. While tokens like stETH add to the liquidity of staked Ethereum, the inability of users to manage their funds independently is a serious problem that could fuel massive selling pressure in the future.
Ethereum critics previously warned investors that unclear lock-up terms could lead to a surge in sell-off activity once investors get their ETH back, and that any burn mechanism could cost holders the value of the second-largest cryptocurrency in the market. Will not prevent the car from potentially crashing. ,