• Arthur Cheong, the founder of DeFiance Capital, says that crypto staking solution Lido (LDO) is undervalued and has great growth potential.
• He believes that Lido is well-positioned to benefit from the growth of the liquid staking market due to its strong technology and proven reliability.
• Cheong also notes that Lido could see a 3x revenue boost due to an increasing Ethereum market cap as well as increased market share of decentralized liquid staking protocols.
An Introduction to Liquid Staking
The liquid staking market is seeing massive amounts of revenue and attracting investors for its lack of volatility. The top five smart contract chains generate over $800 million in annual revenue through this form of staking, and it’s seen as a superior form of earning compared to other forms of DeFi due to its recurring nature.
Lido: A Powerful Crypto Staking Solution
Venture capitalist Arthur Cheong believes that crypto staking solution Lido (LDO) is undervalued at the moment and has great growth potential. He cites its strong network effect around stETH, reliable track record, and move towards decentralized validator technology using SSV & Obol networks as reasons why Lido is positioned for success in the growing industry.
Revenue Growth Potential for Lido
Cheong also notes that Lido could see a 3x revenue boost in the medium term due to multiple factors. These include an increase in Ethereum’s market cap, rising Ethereum staking ratio post-Shanghai, increased market share for decentralized liquid staking protocols, and continued dominance from Lido within the sector.
Current Price Action
At time of writing, LDO is trading for $1.85 each – down 0.8% in 24 hours according to CoinMarketCap data.
Conclusion
Based on Arthur Cheong’s analysis, there are numerous reasons why investors should consider taking a closer look at crypto staking solution LDO which he believes is currently undervalued with excellent growth potential within the burgeoning liquid staking market space.
