Staked ETH is increasing its price at an increasing rate owing to the launch of the Ethereum merge

The official announcement of the launch of the Ethereum merge in September 2022 has taken up by the storm in the global cryptocurrency market. Crypto investors are highly interested in the smart and better functionalities of Ethereum (ETH) through this Ethereum merge. Crypto analysts have also predicted that this launch can make the prices of the ETH blockchain products increase at an increasing rate in August and September — after that the highly volatile cryptocurrency market will decide. Meanwhile, Staked ETH or stETH has hit a new all-time high record in the cryptocurrency market owing to the upcoming launch of the Ethereum merge.

The current price of stETH has reflected some change on the occasion of the launch of the merge without any major barriers or obstacles in the cryptocurrency market. The long-awaited technology upgrade from the blockchain network has made the price of the ether derivative increase and head to the moon for the upcoming launch. Staked ETH is a token issued by the Lido protocol for crypto investors to freely exchange during the presence of staked ether on the Ethereum blockchain. stETH acts as a bond of 1 ETH as the principal amount yielding a 4% return on an annual basis. After the September launch of the Ethereum merge, crypto investors will get stETH and will receive 1.04 ETH in a year from the cryptocurrency market.

According to some popular crypto analysts, the current stETH price is showing very low-risk premia packed with the Ethereum merge execution risk, systemic risks, as well as smart contract risks. Crypto investors and crypto traders have observed the sudden increase in Staked ETH prices to enrich the Ethereum blockchain network ecosystem. The staking yields can be doubled to 8% with the dramatic shift from Proof-of-Work to Proof-of-Stake beacon chain. The total new issuance of the ETH tokens can decrease by 90%. Crypto investors are experiencing a bullish exposure on ETH while investing in Staked ETH or stETH tokens in 2022.

Since June 2022, Staked ETH has started trading at a huge discount to the second largest cryptocurrency, Ethereum. Meanwhile, stETH crypto investors cannot have the power to redeem the tokens for ETH until six to twelve months post-Ethereum merge. Staked ETH is issued by Lido with 1:1 backing with ETH staking deposits.

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