We have recently covered three interesting crypto projects — ETH Merge — Ethereum’s transition from PoW to PoS. We investigated LIDO, the crypto staking service provider, and we also looked at STEPN, the Web3 lifestyle app with inbuilt Social-Fi and Game-Fi elements.
If you have invested in any of those or diversified your capital across all three during the last couple of months, Congratulations! you are already making returns on your invested capital. We have prepared a short summary with reasons why we believe coin prices went up:
LIDO up by 98% -since 01st June 2022 (report publish date)
- Being associated heavily with Ethereum, that has now a tentative date of the Merge, is clearly the main catalyst driving the price of LDO up.
- Lido Finance has announced plans to offer its ETH staking services across the entire L2 network without the need to bridge assets. It plans to start with Arbitrum and Optimism before expanding to other L2s. This will allow users to stake ETH with lower fees while also gaining access to new DeFi apps.
- As of 28th July 2022, Lido had accumulated more than 4 million of ETH in the Merge’s official deposit contract ETH 2.0 via its staking contracts.
- LDO DAO proposed a dual governance solution that will sit between LDO holders and ETH stakers. The proposal will introduce a dispute and resolution mechanism for misaligned incentives between LDO holders and ETH stakers. The mechanism is designed to prevent a hypothetical attack on the ETH network.
ETH up by 44% — since 13th June 2022 (report publish date)
- ETH developers announced long anticipated date for the Merge to ETH 2.0, a full-fledged proof-of-stake blockchain that is scheduled for 19th September 2022
STEPN up by 10% — since 29th June 2022 (report publish date)
- Introduction of new revenue streams through transaction fees by launching DOOAR, STEPN’s own decentralized exchange (DEX).
- STEPN announced 5% of profits generated in Q2 (over $122.5M) will be used for GMT buyback and burn program. The profits were generated regardless of the crypto sell-off in Q2.
DeFi Lending platforms
Our upcoming report on DeFi Lending and identify 3 major players that every long-term investor should have in their portfolio as well as several smaller but rising challengers that could gain 10x.
With more than 150 Lending Protocols operating in the crypto space, DeFi Lending has witnessed substantial TVL growth from literally zero in 2017 to $110 billion in November 2021. While TVL size has shrunk during crypto winter, the major players continue to expand their services and DeFi Lending has a huge market opportunity long term.
The report will also include:
- Size of DeFi Lending (TVL) sector
- TVL and Revenue for top 33 DeFi Lending platforms
- Valuation comparison for 33 DeFi Lending platforms
- Comparison of centralized and decentralized lending platforms
Our investment research approach
When analysing crypto project, we focus on crypto project’s value proposition, user adoption, tokenomics, competitive positioning, total addressable market (TAM), risks, management team and comparable valuation. We also look at DeFi markets in overall to bring our subscribers better understanding and a bigger picture of the crypto market.
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