Cosmos-based Stride has been in action lately. According to a recent report by Nansen, the protocol currently controls more than 80% of the market share within the Cosmos ecosystem.
Despite a prolonged market-wide downtrend, Stride’s governance token – STRD – is up 330% year-to-date. STRD has outperformed both Ethereum (ETH) as well as the Lido token (LDO) in price performance since the beginning of the year. The latter happens to be a competitor to Stride and a leader in the liquid rationing derivatives (LSD) space.
The entropy-based step outperforms ether and LDO
In a joint report with CryptoPotatoNansen revealed that the market value of STRD is approximately $72.29 million and the market value of FDV is $82.58 million, making the FDV/TVL ratio just 2.1.
Its analysis suggests that STRD may be undervalued given its true return revenue stream towards STRD’s stakeholders, its new mechanisms for capturing value through transaction fees, MEV, as well as other near-term catalysts that increase Stride’s addressable market into the billions. Untapped markets.
However, the token’s surge beyond Ether and LDO can be attributed to the recently launched Liquid Saging module which enabled ATOM contributors to store their ATOM instantly without any staking periods. Since launch, the number of liquid ATOM tokens stored through the protocol has increased by approximately 30% in just over two weeks.
Meanwhile, Stride’s total value locked (TVL) has also seen significant growth this year, having only accelerated since the launch of liquid storage on Cosmos Hub, according to the blockchain analytics platform.
Data DeFiLama shows that Stride currently boasts a TVL worth $36.94 million, with ATOM representing nearly 80% of these tokens.
Performance of entropy-based codes
While talking to CryptoPotatoJake Kines, senior research analyst at Nansen, noted that the cryptocurrency market saw an overall decline, with major assets recording double-digit losses. Universe-based tokens followed a similar path, showing increased volatility as some performed poorly while others showed notable gains in value.
“In Q3, with the time frame from July 1 to September 30, we saw a general downtrend in the cryptocurrency market with BTC and ETH declining 11.69% and 13.76% respectively. As for Cosmos tokens, we saw a similar trend with more Volatility in coins that underperform on the downside but also outperform on the upside.
The CEO also added that some of the tokens that outperformed Ether include CANTO: 50.86%, ASTRO: 19.3%, SOMM: 17.5%, DYDX: -5.7%, and INJ: -6%.
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