Top crypto insights firm Glassnode says that two emerging sectors within the digital asset space are destined to boost the price of Ethereum (ETH).
In a new report, Glassnode says that crypto gaming, which took off in 2022, and staking, which exploded in 2023, are now an integral part of the Ethereum ecosystem.
“Over the past two years, two new sectors have emerged within the Ethereum ecosystem; GameFi and Staking. Each sector has sparked varying degrees of investor interest, with GameFi almost overtaking DeFi in mid-2022. The Staking industry (represented here via the tokens of Liquid Staking Protocols) has been on the rise since the beginning of 2023, with the aggregated market cap exploding from $505M in Jan-2023 to over $3.20B in Apr-2023.
If we consider these sectors as parts of the wider Ethereum economy, and within the context of EIP1559 burn, we can also expect that some portion value accrued by these sectors, will also feed back into the valuation of ETH.”
However, Glassnode also says that the two sectors, along with decentralized finance (DeFi), may never reach “escape velocity” from ETH itself. DeFi in particular, according to Glassnode, may have difficulties in the future trying to be more appealing to investors than simply staking ETH.
“It is highly likely that the lackluster performance of DeFi tokens over the last two years is a factor or the emergence of native ETH staking yield.
It seems that within the Ethereum landscape, the native ETH token may in fact be a predator of value, with much of it sourced from the very tokens within its own orbit.
As a result, we may soon see a new wave of discussion, debates, and designs for token revenue models emerging within the DeFi sector. It now falls to the teams and stakeholders to shape and deliver a successful outcome of these proposals. The battle to re-ignite interest in DeFi tokens is likely underway, but given the new hurdle rate set by the ETH token itself, it is unlikely to be an easy one.”
You can read the full Glassnode report here.
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