Liquidity staking has recently become a focal point in the DeFi space, playing a key role in the growth of Total Value Locked (TVL) across various DeFi protocols.
Polkadot enters the liquidity staking space
In a notable development for the Polkadot ecosystem, a strategic partnership has emerged between ZodiaCustody and paritytech. This partnership aims to improve the staking landscape by facilitating institutional access to the Polkadot network, including participation in the staking process.
In addition to staking, this partnership will also provide important custody services to support the Polkadot ecosystem.
Besides the above developments, the number of staked DOTs continued to increase over the past month. However, this increase coincided with a decrease in reward rates.
The falling reward rate raises questions about the sustainability of the staking model and its appeal to users.
How is DOT doing?
Socially, sentiment around DOT has taken a hit over the past few weeks. This bearish sentiment could have a ripple effect on market behavior and investor confidence, influencing the decisions of both retail and institutional players.
Despite these challenges, DOT has proven to be strong in terms of social engagement. Engagement increased by 64% and DOT-related mentions increased by 16.4%.
Such heightened interest shows that DOT remains on the radar of crypto enthusiasts and investors at the time of writing.
Over the last month, the DOT price has decreased, moving from $5.05 to $4.08 at the time of writing. Furthermore, development activity has declined, suggesting that new developments on the network may be slowing down.
Furthermore, DOT price volatility increased. These fluctuations could affect the trading environment for DOT and potentially impact its adoption and long-term prospects.