AI speculation peak, surging LSD plate can undertake hot market?

AI hype has been drunk life and death, in the continuous promotion of emotions, profit plate is huge, chip fault serious, high stagflation. AGIX fell back sharply yesterday, A share Hanwang technology opened low today, announced the end of the AI market. However, in the eyes of the money making this round, the market is still burning.

Subject matter is important, but sometimes the timing of the subject matter is more important.

A few hours ago, Coinbase CEO Brian Armstrong tweeted that the SEC is rumored to be looking to remove cryptocurrency pledges from retail investors in the United States, and the market has been talking about a regulatory crackdown on the crypto market in the United States. At the market level, there is an organic crisis, CEX pledge bearish, LSD (liquidity pledge derivatives) positive. Now let's sort out the relevant currencies of the LSD plate.

The Four Brothers

LDO (Lido)    

Ethereum liquidity pledge leading, with the current pledge amount of nearly 5 million ETH, occupies more than 90 market shares. Its protocol design is simple and clear. stETH can be 1:1 when deposited into ETH, which is used as equity derivative asset, and the latter has good liquidity on Curve.

If we think LSD is the most "hard" logic of crypto market fundamentals, LDO is the central force. During the bear market's rallies in the second half of 2022, the LDO was often the first pick of money and is currently valued at $2.3 billion.

RPL (Rocket Pool)

In contrast to Lido's full-chain expansion, Rocket Pool focuses on Ethereum. Ldos only have governance functions, but in Rocket networks, where a certain number of RPLS are pledged to keep nodes running, the design gives RPLS Utility. RPL, currently valued at $850 million, has broken through a near one-year high today, and the trend has continued upward in the last three months, up 300%.

SSV (ssv.network)

The SSV itself is an infrastructure serving authenticators. However, the SSV does not perform asset management, that is, it does not absorb the ETH of users for recombination. Unlike a real mortgage service like Lido. SSVS mainly serve two types of users, one is the long-term position, need to ensure the safety of funds (do not trust assets to a third party), but do not want to do it themselves; One is the value capture of SSVS, a group of ETH mortgage service providers led by Lido, Rocketpool and Binance. SSVS help pledge operators reduce operation and maintenance pressure, reduce equipment and server expenditure and management costs, and reduce security risks.

SSV currently has a market capitalization of $230 million, up 20 percent on the day so far.

FXS (Frax)

Frax, best known for its algorithm-based stablecoins, consists of a range of DeFi products, including stablecoins, lending markets, and decentralized trading platforms. Frax has not been involved in LSD for a long time. Currently, Frax ranks fifth in market share and has a market capitalization of around $100 million. It will take time to see if it can be recognized by the market.

Fundamental positioning of LSD

Strictly speaking, AI lacks reasonable and reliable hyping logic in the crypto industry, and this round of market is more like a resonance response to the global technology market as a whole. Further, if we believe that AI belongs to meme speculation, LSD undoubtedly belongs to the fundamental track of the crypto industry -- pledge is an application with actual landing, which is also confirmed by the first performance of LDO and other indicators in every recent cycle of warming. Thus, switching is not only the overflow of funds, but also a return of market aesthetics.

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