Market

Renzo Restaking Protocol Raises $17 Million

Published

2 weeks ago

June 18, 2024

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Renzo, one of the key players in the liquid staking space, has announced a $17 million raise in a two-series fundraiser.

The collection comes as it looks to expand its reach in the growing restaking arena even as it runs atop Ethereum’s EigenLayer.

Renzo Raises $17 Million from Galaxy and Digital Nova

Renzo has successfully raised $17 million through a two-series fundraiser. The first round was led by Galaxy Ventures, while Brevan Howard Digital Nova Fund spearheaded the second. These funds will be allocated towards expanding Renzo’s restaking services, which will now include the integration of ERC-20 tokens into its protocol.

The project’s whitepaper describes Renzo as a “liquid derivative platform” built on top of the EigenLayer protocol. Specifically, it acts as an interface to the EigenLayer, effectively securing AVSs while offering a higher yield than Ethereum.

“For every liquid staking token or ETH deposited on Renzo, it mints an equivalent amount of Renzo’s liquid restaking token, ezETH, in return,” reads an excerpt in the whitepaper.

As noted above, the $17 million raise will help Renzo integrate ERC-20 tokens into its protocol, a new trend in restaking. EigenLayer recently shared plans to start accepting its native EIGEN token, an ERC-20, toward securing its own AVS, EigenDA.

“Soon be able to deposit your EIGEN tokens onto EigenLayer! If you have already restaked ETH and delegated to an EigenDA operator, staking your EIGEN on the web app automatically delegates to the same operator,” blockchain infrastructure provider Luganodes reported.

Notably, native ETH restaking is the brainchild of the EigenLayer and now expands into other assets, including EIGEN, to secure EigenDA. ERC-20s entering the restaking arena set the stage for other liquid restaking tokens to join alongside ezETH.

Restaking Battleground is Shaping Up

According to DefiLlama data, the liquid restaking space has a total value locked (TVL) of $14.145 billion. Growth intensified in 2024, with the TVL metric measuring the overall activity and popularity of a DeFi project.

Renzo is the second largest liquid restaking protocol, with a TVL of $3.614 billion, only second to Ether.fi with $6.1 billion. The data shows that Renzo’s TVL is up 13% in a month.

Liquid restaking TVL — Liquid Restaking TVL, Source: DefiLlama

With Renzo’s plans to expand its services atop the EigenLayer, restaking battlegrounds are forming. Recently, sector competitor Symbiotic debuted with $5.8 million in seed funding from Paradigm and Cyber Fund.

The protocol aims to provide flexible, permissionless restaking options, and its debut marked a significant challenge for EigenLayer. EigenLayer only accepts ETH, EIGEN, and a few ETH derivatives. In contrast, Symbiotic accepts any crypto asset based on Ethereum’s ERC-20 token standard. Symbiotic is backed by Lido DAO supporter Paradigm, adding to its competitive edge.

Now, with Renzo’s recent funding, the EigenLayer protocol could gain the fortification needed to withstand the intense competition.

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Related Topics:Million Protocol raises Renzo Restaking

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Market

Crypto Whales Dump $148 Million in Bitcoin and Ethereum

Published

5 mins ago

July 2, 2024

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Crypto whales significantly impact market trends by offloading substantial amounts of Bitcoin (BTC) and Ethereum (ETH). Recent data indicate a continued pattern of these extensive sales, totaling over $148 million in crypto, moved to various exchanges for probable liquidation.

Since last week, Bitcoin has been trying to recover after dipping to $58,500. Attempts to rally were evident; Bitcoin nearly reached $64,000 on Monday. However, increased selling pressure forced prices below $63,000.

Bitcoin ETFs Recorded $129 Million in Inflows While Crypto Whales Sell

On Monday, a prominent crypto whale linked to the wallet address 3G98j transferred 1,800 BTC valued at $114 million to Binance at around $63,333. This move typically signals an intent to cash out, reflecting a common strategy among crypto whales during market volatility.

“The Bitcoin price started declining after the whale unloaded BTC,” Spot On Chain said.

Further analysis highlights a significant shift in trading behavior. From June 19 to 21, the crypto whale withdrew 6,725 BTC, valued at $437 million, from Binance and OKX at an average price of $65,008.

This marked the crypto whale’s first major BTC accumulation in over 1.5 years. However, as prices declined by over 4.11%, the crypto whale has sent 3,481 BTC back to Binance in the past five days, indicating a bearish sentiment.

Historically, this crypto whale has shown strategic trading acumen, netting about $1 billion from BTC transactions between 2022 and 2024. During the 2022 bear market, he amassed 41,000 BTC at an average of only $19,000. He later capitalized on this by unloading 37,000 BTC at around $46,800 during the bull markets of 2023 and 2024.

Ethereum has also seen similar whale activities. On early Monday, the crypto wallet 0xedo, allegedly associated with Abraxas Capital, deposited 42,000 ETH, worth approximately $34.78 million to Bitfinex. Despite these large transactions, this crypto whale still holds a significant position in ETH, with over $112 million currently spread across lending and farming platforms like Spark, GearBox, and Stargate, securing a profit of $4.53 million.

Meanwhile, there has been a glimmer of hope for Bitcoin investors. Spot Bitcoin ETFs recorded a substantial inflow on Monday, with $129 million entering the market.

This is the highest in the past 16 trading days. The Fidelity Wise Origin Bitcoin Fund attracted the largest inflow, with $65 million. Moreover, both BlackRock’s iShares Bitcoin Trust and Grayscale Bitcoin Trust reported 0 inflows on Monday.

Spot Bitcoin ETFs Net Flows. Source; SoSoValue

This contrast between whale sell-offs and significant ETF inflows illustrates the complex and often contradictory forces shaping the crypto market. Such insights are essential for anticipating market shifts and protecting investments, ensuring stakeholders remain informed and vigilant.

Moreover, Bitcoin bull Tom Lee has predicted that Bitcoin will still hit $150,000 by the end of the year. He believes that after the market absorbs the effect of Mt. Gox sell-offs, Bitcoin can strongly rebound.

“If I was investing in crypto, knowing that one of the biggest overhangs will disappear in July, I think it’s a reason to expect a sharp rebound in the second half. I think 150 is still within,” Lee said.

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Market

XRP Price Maintains Support Level: What It Means For The Bulls

Published

1 hour ago

July 2, 2024

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XRP price climbed higher and tested the $0.4840 resistance zone. The price corrected gains but the bulls are able to protect the $0.4750 support.

XRP price is eyeing an upside break above the $0.4840 resistance zone.
The price is now trading above $0.4720 and the 100-hourly Simple Moving Average.
There is a connecting bullish trend line forming with support at $0.4760 on the hourly chart of the XRP/USD pair (data source from Kraken).
The pair might gain bullish momentum if there is a close above the $0.4840 resistance.

XRP Price Corrects Gains

XRP price started a decent upward move above the $0.4740 resistance like Bitcoin and Ethereum. The bulls were able to push the price above $0.480. However, the bears were active near the $0.4840 resistance zone.

A high was formed at $0.4839 and the price recently started a downside correction. There was a move below the $0.4800 and $0.4780 levels. The price even spiked below the 50% Fib retracement level of the upward move from the $0.4695 swing low to the $0.4839 high.

It is now trading above $0.4740 and the 100-hourly Simple Moving Average. There is also a connecting bullish trend line forming with support at $0.4760 on the hourly chart of the XRP/USD pair.

On the upside, the price is facing resistance near the $0.480 level. The first major resistance is near the $0.4840 level. The next key resistance could be $0.4880. A clear move above the $0.4880 resistance might send the price toward the $0.5050 resistance.

The next major resistance is near the $0.5120 level. A close above the $0.5120 resistance zone could send the price higher toward $0.5250. Any more gains might send the price toward the $0.5320 resistance.

More Losses?

If XRP fails to clear the $0.4840 resistance zone, it could continue to move down. Initial support on the downside is near the $0.4765 level and the trend line.

The next major support is at $0.4740, the 61.8% Fib retracement level of the upward move from the $0.4695 swing low to the $0.4839 high, and the 100-hourly Simple Moving Average. If there is a downside break and a close below the $0.4740 level, the price might continue to decline toward the $0.4640 support in the near term.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now just below the 50 level.

Major Support Levels – $0.4765 and $0.4740.

Major Resistance Levels – $0.4800 and $0.4840.

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Market

The Rise of Liquid Staking on Solana: Key Insights

Published

2 hours ago

July 2, 2024

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Solana, the fifth-largest crypto asset by market size and the third-largest proof-of-stake (POS) network, saw its liquid staking ratio rise by 1.76% quarter-over-quarter.

According to DefiLlama, over $54 billion worth of crypto assets are staked across liquid staking platforms. Liquid staking, unlike traditional staking, lets users earn extra yield and retain liquidity with a derivative token for DeFi.

The Rise of Liquid Staking on Solana

Data from Dune Analytics shows over 23 million SOL, valued at over $3.6 billion, staked on liquid staking platforms. Solana has a higher staking ratio than Ethereum, around 60%, but only 6% of staked SOL is in liquid staking. This indicates untapped potential in Solana’s liquid staking sector, as well as potential growth opportunities.

Read more: What Is Liquid Staking in Crypto?

Solana Liquid Staking Ratio. Source: Dune Analytics

Solana’s two-day unbonding period, shorter than many other blockchains, might also impact the popularity of liquid staking. Konstantin Boyko-Romanovsky, founder and CEO of Allnodes, explains how this can be an advantage over other blockchains like Polkadot or Ethereum.

“Since Solana’s unbonding period is only two days, liquid staking might not be as popular as blockchains with unbonding periods of 2-3 weeks. In the context of staking, the unbonding period is when staked assets are unlocked and available for use after a user decides to unstake them,” Boyko-Romanovsky, told BeInCrypto.

Platforms like Sanctum and Jito Labs are also driving the liquid staking boom on Solana. According to researcher and analyst Tom Wan, Sanctum lowered the barrier of entry and is helping projects build their own liquid staking tokens (LSTs) and scale.

Jito currently has about 91,000 Solana investors staking on the platform, with an APR of over 8% and over 10.6 million SOL staked.

“Sanctum is able to take the torch. The launch of INF, Sanctum Router, and Sanctum Reserve, has lowered the barrier to entry, buklding foundation of a Cambrain explosion of the liquid staking sector on Solana,” Wan shared in a post.

Solana Dominance of Liquid Staking Token. Source: Dune Analytics

Boyko-Romanosvky also highlights the influence emerging trends like re-staking can have on liquid staking’s growth in Solana.

“Emerging technologies like re-staking can potentially influence the development and adoption of liquid staking on Solana and similar blockchains. By providing continuous liquidity, increasing yield opportunities, and offering greater flexibility, re-staking can enhance the attractiveness of liquid staking even on platforms with short unbonding periods like Solana. However, ensuring the security and reliability of these technologies, alongside effective market and liquidity management, will be crucial for their success and widespread adoption,” Boyko-Romanosvky shared.

As liquid staking continues to grow in popularity, Solana could benefit from increased user participation and enhanced network security. So far, two major filings for a Solana ETF have been made in the US. If liquid staking popularity continues to grow, it can give Solana a competitive advantage and attract investment firms.

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