- Ethereum’s SSV network unveils a new fund that supports further decentralization.
- SSV bulls may be headed for a cliff after the strong performance in the last two months.
Ethereum is fairly popular in the blockchain arena, with most of the attention it gets going toward mainnet and layer 2 networks.
Its decentralization infrastructure has relatively flown under the radar; there is one particular segment that does not receive enough attention and that is decentralization infrastructure.
Ethereum’s shift to Proof of Stake opened the doors to an entirely new structure of incentivized network participation. SSV Network, an open-source, decentralized Ethereum stake protocol is going the extra mile to support decentralization.
Its DAO, dubbed the SSV network recently unveiled a $50 million fund aimed at supporting the creation of more applications using Distributed Validator Technology (DVT).
The pursuit of more decentralization
Recent reports suggest that the fund represents a path through which to facilitate more decentralization and here’s how- SSV Network aims to push for DVT as the main Ethereum infrastructure.
This is the same technology championed by Vitalik Buterin as the best path for ensuring decentralization.
If successful, its footprints will be evident in the form of more support for decentralized staking solutions. It might also support a more robust growth path for the SSV network and its native SSV token.
More value for SSV?
SSV already boasts multiple use cases which include governance, voting, and operator payments. A broader impact on the overall Ethereum ecosystem may boost SSV’s demand.
The latter has far pushed SSV into the list of the best-performing tokens. For perspective, it is up by over 300% from its November lows. Also, it recently managed to pull off a new 12-month high thanks to strong demand.
Source: TradingView
Can SSV maintain the rally? Well, its MFI suggests that there have been a sizable amount of outflows in the last few days. In addition, the RSI is forming a price-RSI divergent pattern which suggests that a retracement is in the works.
SSV’s on-chain metrics are also flashing interesting signals. That may not necessarily align with the bearish expectations. For example, the supply of SSV held by top addresses has remained unchanged for almost two weeks, meaning whales are not contributing to selling pressure.
Source: Santiment
How many are 1,10,100 SSVs worth today?
Furthermore, the weighted sentiment has slightly improved in favor of the bulls since the end of January.
This is a confirmation that investors’ sentiment is improving. The 90-day mean coin age metric did register some upside confirming an increase in the level of buyers bearing the current highs.
This was backed by a recent surge in social dominance to a new monthly high.
Source; Santiment
If anything, these signs are bullish, but this is contrary to the price pattern that suggests a higher probability of a reversal.