Weekly Alpha #33 - Comprehensive Guide to Mastering Restaking Airdrops 🧑🌾
Latest DeFi Alphas Delivered in a Concise Newsletter.
Welcome to the latest edition of Weekly Alpha.
I deliver insights on the cryptocurrency market, emerging projects, macroeconomic trends, and DeFi directly to your inbox.
In this edition of The Weekly Alpha:
🗞️ Weekly DeFi News Digest
🧑🌾 Comprehensive Guide to Mastering Restaking Airdrops
📈 Market overview
Your Weekly DeFi News Digest 🗞️
In this section, I highlight the week's most impactful DeFi news. This way, you can bypass the chatter on Twitter and concentrate on the essential updates.
Ethereum Exit Queue Clears As Celsius Rebalances Assets
Mantle Launches V2 Iteration On Testnet Following Impressive Growth
Metis Launches Decentralized Sequencer On Testnet Following Meteoric Growth
Ethereum Throughput Tags Record High As Burn Rate Drives Down ETH Supply
Manta Network experiences DDoS attack amid exchange listing
Trader bribes way to $7M profit on SatoshiVM token launch
Frax Completes V3 Rollout With Launch Of Bonds
Arbitrum Launches Program Supporting Custom Chain Development
The Ultimate Restaking Airdrops Guide
Currently, restaking is one of the most discussed topics in the Ethereum community, and it's a frequent subject in my newsletter. We're beginning to observe a trend of airdrops targeting restakers, with examples like Alt Layer. I anticipate this trend will expand, with more projects like Ether.fi, which I discussed in a previous edition of my newsletter, contributing to this movement.
In this article, we will explore several strategies that I believe could potentially lead to future airdrops for restaking.
Restake on EigenLayer
On-chain metrics reveal that while there's a substantial Total Value Locked, the number of restakers remains low. I believe that restaking on EigenLayer as soon as the opportunity arises could provide an advantageous position for receiving airdrops from projects utilizing EigenDA for data availability or EigenLayer for enhanced security.
Mint Restaking tokens
Restaking tokens, like eETH, can earn you EigenLayer points and potentially qualify you for several airdrops simultaneously. For instance, the eETH project, which currently doesn't have its own tokens, awards loyalty points as well as EigenLayer points. Therefore, there's a possibility that if a project decides to airdrop to EigenLayer users, it might also include eETH users who have restaked their Ether.
Restake Liquid Staking Tokens with no Governance tokens
What I'm suggesting is this: if you're not directly creating an eigenPOD for restaking, consider using an LST project without its own token, like Swell Network. Swell Network provides a method to accumulate 'pearls' by minting new swETH, and offers additional points for restaking them on EigenLayer. The aim is to be strategic with your investments. In my opinion, this approach could be more advantageous than restaking with Lido, which currently dominates a large portion of the market share.
Stake Celestia
EigenDA closely aligns with Celestia and the concept of modular blockchains. In this context, I am confident that Celestia stakers will see a significant number of restaking airdrops, particularly from projects that utilize either EigenLayer and Celestia for data availability.
Conclusion 🧠
We are entering a new era of airdrops, and I believe that EigenLayer will be instrumental in launching some of the most significant airdrops of 2024. Given that many airdrops are now strategically played, it's crucial to be tactful in our approach. While this is not financial advice, I personally prefer to invest a bit more in gas on the Mainnet for a chance to secure substantial airdrops, rather than following the crowd for minimal returns. EigenLayer holds immense potential, and I anticipate it will facilitate one of the most significant airdrops on Ethereum.
Weekly DeFi Market Update 📈
In this section, we'll take some time to examine useful metrics within the Ethereum ecosystem.
Pudgy Penguins Floor
As a Pudgy holder, I felt compelled to discuss the PP floor. This recent surge was quite unexpected, especially in such a short term. The floor value rose from 10 ETH to an all-time high of around 19.3 ETH, marking an increase of approximately 9 ETH in value over the last 7 days.
Crypto are working by cycles, I believe that when there will be a lot of degens in profits, we will see capital rotating from Alt coins to expensive JPEG’s and this is because in my opinion, those expensive PFP are not only for the community aspect but also a great to flex your wealth online.
Daily Active Addresses
The last 30 days have been remarkable for zkSync ERA in terms of daily active addresses, experiencing a surge of over 93%. I believe this upward trend will continue until they finally decide to launch a governance token.
Ethereum vs TradFI
In terms of market performance, Ethereum has outperformed traditional finance in the last month, gaining +13%, while the NASDAQ saw a smaller increase of +3%.
The stablecoins market
Stablecoins serve as an excellent metric for gauging the market's stage, and currently, we're observing a significant amount of liquidity being deployed across various blockchains. This could be an indication of the onset of a bull market, but it's crucial to stay vigilant.
As illustrated in the table below, there has been a +61% increase in transfer volume on Ethereum alone, amounting to a total of $132.36 billion.
How are you positioning yourself for the upcoming bull market?
Wrapping up for this week. For daily DeFi updates, follow me on Twitter
None of the information in this newsletter constitutes financial advice. While I personally use most of the protocols that I discuss, it's important to understand that they involve substantial risk. Don’t invest what you can’t afford to lose