Ethereum’s SSV network unveils a new fund supporting further decentralization. SSV bulls may be headed for an abyss after the strong performance of the past two months.
Ethereum is quite popular in the blockchain arena, with most of the focus on mainnet and layer 2 networks.
The decentralization infrastructure has flown relatively under the radar; there is one specific segment that is not getting enough attention and that is the decentralization infrastructure.
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The shift from Ethereum 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 committed to supporting decentralization.
His DAO, called the SSV Network, recently unveiled a $50 million fund to support the creation of more applications using Distributed Validator Technology (DVT).
The pursuit of more decentralization
Recent reports suggest that the fund represents a path to enable more decentralization and this is how SSV Network is aiming for DVT as the core Ethereum infrastructure.
This is the same technology championed by Vitalik Buterin as the best way to ensure decentralization.
If successful, the footprints will be clear in the form of more support for decentralized staking solutions. It can also support a more robust growth path for the SSV network and its native SSV token.
More value for SSV?
SSV already has multiple use cases, including governance, voting, and operator payments. A broader impact on the overall Ethereum ecosystem could drive SSV demand.
The latter has pushed SSV far into the list of the best performing tokens. For perspective, it’s up more than 300% from its November low. It also recently managed to reach a new 12-month high thanks to strong demand.
Can SSV keep up the rally? Well, the MFI suggests there has been a significant outflow in recent days. In addition, the RSI forms a divergent price RSI pattern, suggesting that a retracement is in the works.
SSV’s on-chain metrics also give interesting signals. That doesn’t necessarily align with bearish expectations. For example, the supply of SSVs from top addresses has remained unchanged for almost two weeks, meaning that whales are not adding to the selling pressure.
How much are 1,10,100 SSVs worth today?
In addition, weighted sentiment has improved slightly in favor of the bulls since late January.
This is confirmation that investor sentiment is improving. The average coin age of 90 days did register some upside, confirming an increase in the number of buyers carrying the current highs.
This was supported by a recent increase in social dominance to a new monthly high.
If anything, these signs are bullish, but this conflicts with the price pattern suggesting a higher probability of a reversal.
This post Ethereum Infrastructure: A Look at SSV Network and How It’s Evolving
was published first on https://ambcrypto.com/ethereum-infrastructure-a-look-at-ssv-network-and-how-it-is-evolving/