The Market Roundup: Week of June 19
- This week’s market snapshot
- FTX bails out BlockFi
- Metaverse standards are coming
- Bancor suspends impermanent loss protection
- Solana’s web3 phone Saga
Last week we saw ETH price bounce from the $900 bottom up to around $1,200. Now that the dust is settling from the 3AC blow up the market has returned to trading in-line with broader risk assets.
An interesting phenomenon at the market lows was that the discount for buying stETH increased to ~6%. This discount has started to come down and is sitting ~3.5%. The discount is a combination of liquidity premium and a function of volume of inflows of $ETH into staking on Lido.
Staking inflows basically stalled around mid May, which resulted in the stETH “depegging“ from ETH. stETH is not actually pegged to ETH, and so when demand for selling stETH exceeds demand for staking ETH on Lido the price drops…