When it was made official that the Ethereum merger would start in September 2022, the cryptocurrency market around the world went crazy. Many people who invest in cryptocurrencies are interested in the fact that this Ethereum merger has made Ethereum (ETH) smarter and better. Experts in cryptocurrencies also say that this launch could make the prices of ETH blockchain products go up quickly in August and September. The decision will then be made by the very volatile cryptocurrency market. In the meantime, Staked ETH, also known as stETH, has reached a new all-time high on the cryptocurrency market. This is because the Ethereum merging is about to happen soon.
The introduction of the combine has caused the price of stETH to go up and down a bit, but there are no major problems or bottlenecks on the cryptocurrency market. The long-awaited blockchain network technology upgrade has caused the price of the ether derivative to rise and reach new heights in preparation for the upcoming launch. The staked ETH token was made by the Lido protocol. It lets cryptocurrency traders trade freely while staked ether is on the Ethereum network. stETH works like a bond, with an initial investment of 1 ETH and an annual return of 4%. After the Ethereum merger goes live in September, investors in the cryptocurrency market will get stETH and 1.04 ETH each year.
Some well-known cryptocurrency analysts say that the current price of stETH shows a relatively low-risk premium due to the Ethereum combining execution risk, systemic risk, and smart contract risk. Crypto traders and investors have noticed that the price of Staked ETH has gone up sharply to help build up the ecosystem of the Ethereum blockchain network. When Proof-of-Work beacon chains are replaced by Proof-of-Stake beacon chains, the staking yields can be doubled to 8%. The number of new ETH tokens that are made could go down by 90%. In 2022, crypto investors who buy Staked ETH or stETH tokens will have a bullish exposure to ETH.
Since June 2022, the price of Staked ETH has been much lower than that of Ethereum, the second-largest cryptocurrency. stETH investors won’t be able to turn their tokens into ETH until six to twelve months after Ethereum is integrated. Lido gives out staking ETH that is backed 1:1 by staking ETH deposits.