Bittime - The founder of Three Arrows Capital and OPNX, Zhu Su, recently tweeted on X (Twitter) about the condition of meme coin which he said was weakening. Su believes that the weakening of meme coins is due to several factors related to staking on Ethereum.
Staking and Earning on Ethereum
Since the implementation of The Merge in September 2022, Ethereum switched to a Proof-of-Stake (PoS) consensus mechanism. This mechanism allows user participation in securing the network by staking their ETH tokens. As a reward, staking participants will receive rewards in the form of income.
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Reasons for Weakening Ethereum Meme Coin
According to Su, participants staking on Ethereum are currently faced with two investment options, namely:
- Staking ETH: By staking ETH, participants will earn a fixed income from staking on the beacon chain.
- Buying ERC20 Tokens: Another alternative is to buy ERC20 tokens built on the Ethereum blockchain. Some ERC20 tokens offer higher profit potential than staking ETH directly.
ETH Staking Is More Popular
Su believes that many staking participants are currently choosing the more conservative option, namely staking ETH directly. This is because the potential income from staking ETH on the beacon chain offers relatively stable returns with lower risk than investing in ERC20 tokens.
The impact of many participants choosing to stake ETH directly is weakening demand for Ethereum meme coins. Ethereum meme coins generally have high volatility and depend on market trends and sentiment.
Also Read: How to Stake?
Meme Coin Ethereum's Return to Glory
Even though the Ethereum meme coin is currently weakening, Su predicts that the situation will change along with the convergence of yields between staking ETH and buying ERC20 tokens.
What Su means by yield convergence is the potential for achieving a balance between income obtained from staking ETH directly and income obtained from investing in ERC20 tokens.
In other words, Su estimates that in the future, the potential earnings from staking ETH could become more competitive compared to investing in ERC20 tokens. This can certainly encourage the interest of staking participants to look again at Ethereum meme coins.
Also Read How to Buy Crypto:
Interesting Perspective
Zhu Su's view regarding the weakening of the Ethereum meme coin due to more conservative staking choices is an interesting perspective to observe. His predictions regarding the convergence of staking returns and the potential for strengthening of the Ethereum meme coin certainly need to be monitored in the future.
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How to Buy Crypto with Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Learn Complete Guide How to Buy Crypto on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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Trading Meme Coin: Trends, Speed, and Profit!
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Meme Coin Trends 2024: Joke or Crypto Future?
DISCLAIMER : This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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