Try Quests to earn cryptoLido Bounties: HODL or Sell?
Q11. Identify accounts that have staked ETH with Lido when the price of ETH was much higher or much lower than it is now. Have they held or sold their stETH?
Lido is the market leader for Ethereum liquid staking, representing over 80% of market share in that space. Assets staked on Lido are worth over $10 billion USD at today’s prices, and are split across 76,000 individual crypto wallets.
In this dashboard will be looking at accounts that have staked ETH with Lido when the price of ETH was much higher or much lower than it is now. We will have a look if they have held or sold their stETH and if they have sold above or bellow current price.
To develop this analysis we'll look into users' staking and selling actions. The following types of users are considered for this report:
- Staker: users that minted stETH from Lido staking.
- Seller: users that swapped their previous staked stETH.
Moreover, the following prices are considered:
- Staking price: the average price of stETH across all transactions.
- Selling price: the average price of stETH when it was swapped out
- Current price: last stETH price.
Firstly, it is necessary to explain what is stETH and how this token is related to Lido. stETH is a token that represents the staked Ether in Lido, combining the initial deposit value with rewards. Thus, stETH is a token that allows you to earn DeFi yield rewards. By using Lido to bet their ETH on the Ethereum chain, users will receive the stETH token, which represents their ETH on the Ethereum beacon chain on a 1:1 basis.
Therefore, the first thing to check is the ETH/stETH price parity.
Once all this is reviewed let's have a look into seller vs stackers.
- This chart represents the daily % of sellers vs stackers since 2022.
- Stackers volume is bigger than seller actvity during almost all the period analysed. However, during the last days more and more users are selling.
- Since the start of 2022 there is a clear frowing trend for sellers.
Once we've seen the stETH price and the daily % of sellers let's monitorize their activity. For this section I classified the users between:
- Users that staked above current price
- Users that did not sell.
- Users that sold below current price.
- Users that sold above current price.
- Users that staked below current price
- Users that did not sell.
- Users that sold below current price.
- Users that sold above current price.
- Almost all users have staked stETH above the current stETH price (34.360k users). Only 4 users have staked below the current price.
- More than 99,9% of the users have staked stETH above current price. Meaning that they are in loss of capital.
Users that staked above current price
- 31.598k wallets have no sell their stETH staked balance.
- 2759 users have sold above current stETH price.
- Only 3 users have sold below current stETH price, meaning they have had benefits
Instead of looking at the number of wallets in each category let's look at %.
Users that staked above current price
- More than 90% of the wallets still hodl their stETH staked balance.
- 8% of users have sold above current stETH price, having losses.
- less than 1% users have sold below current stETH price, meaning they have had benefits.
Users that staked below current price
- All the wallets still hodl their stETH staked balance.