Wrapped stETH (WSTETH) is a currency that merges the functionality of decentralized finance with the advantages of Ethereum staking. This article discusses what Wrapped stETH is, how it works, its uses, and price history.
What is Wrapped stETH?
Wrapped stETH (WSTETH) is a stable variant of staked ether designed for use in decentralized finance applications. Users can receive Wrapped stETH by staking ETH through Lido's liquid staking platform, allowing them to participate in DeFi while earning staking rewards.
WSTETH maintains a fixed balance that increases over time, unlike standard stETH, which is rebalanced daily to reflect staking earnings.
How does Wrapped stETH work?
The Wrapped stETH system operates on the Ethereum blockchain, staking ETH through the Lido platform. This process creates a stable and consistent version of stETH. Wrapped stETH stands out among similar products by providing the necessary version of stETH for most DeFi protocols, allowing users to integrate their staked assets without sacrificing their rewards.
Price history of Wrapped stETH
Currently, WSTETH is trading at around $3042.37, with a market capitalization of $10.6 billion and a 24-hour trading volume of $24.7 million. The price of WSTETH has seen significant increases in recent days amid a general bullish trend in the cryptocurrency market. Further targets may be set at $4000, with potential retracement levels around $2500.
Wrapped stETH serves as a key component in the decentralized finance space, offering users new opportunities to utilize their staked assets. Its functionality and applications open new avenues in DeFi.
