Been digging into what makes crypto prices jump lately... I think a big part of it is staking or locking up tokens. Some projects I see doing well right now are those that have liquid staking protocols.
Like PUMPBTC, it shot up to like $0.205, that’s a crazy +127% in just a day! Makes me feel good about my stacking bets.
What do you guys think? What other strategies are out there that really pump liquidity?
Gotta point out that price spikes and liquidity are kinda different things, you know? Staking or "liquid staking" can reduce the amount available, which might cause wild swings like +127%... but it actually makes liquidity thinner in the long run.
Liquid staking derivatives can be used as collateral, giving you use, but that can backfire when those tokens open up. For PUMPBTC, what’s the actual depth and venue mix? And besides staking, anyone seen other methods that genuinely add liquidity instead of just causing a short-term spike?