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Amid the ongoing volatility of the cryptocurrency market, some tokens have been surging despite the ongoing retracement. SSV Network (SSV), a fully decentralized and open ETH staking network, reached its all-time high of $49.51 on Feb. 27.
As of Feb. 28, SSV was trading at $45.18, down from the high with a market cap of $451.63 million, placing it in top 100 crypto projects.
Why is the token surging, and how far will it go before the rally exhausts? This article will delve into all these aspects, but first, let’s understand what SSV Network is.
What is SSV Network
After transitioning to the proof-of-stake (PoS) consensus model in 2022, Ethereum validators must stake 32 ETH to help secure the network.
However, running a node as a validator is a complex process that demands technical expertise, and even a short downtime can result in a loss of rewards. Furthermore, offline validators can face slashing or being entirely forced off the network.
To address these issues, SSV Network has emerged as a decentralized layer 0 staking infrastructure that utilizes Distributed Validator Technology (DVT), also known as Secret Shared Validators (SSV).
The SSV Network splits Ethereum validator keys into KeyShares and distributes them across multiple non-trusting nodes to improve uptime and security. This allows for more participants and greater uptime, while offline keys can be stored securely.
What’s behind this surge
2022 left the cryptocurrency market feeling uninspired – even the SSV Network struggled with erratic, bearish price action.
But fast forward to 2023, and SSV has roared back to life with a bullish surge that’s turning heads. In fact, its price has skyrocketed 29% YTD, leaping from $10.07 on Jan. 1 to a staggering $46.18 as of Feb. 28.
So, what’s behind this rally? Well, most of the ETH at stake is owned by a few players, making the ecosystem need decentralization factors like DVT.
Moreover, with the upcoming Shanghai update and SSV Network’s mainnet in 2023, there is a great opportunity to build in the Ethereum space.
Hence, the SSV.Network DAO has launched a $50 million ecosystem fund dedicated to supporting the development of DVT-based applications to advance the next generation of staking solutions.
Major crypto industry players include DCG, OKX, HashKey, NGC, Everstake, HackVC, GSR, and Chorus.One, SevenX, and 1kx have come together to promote Ethereum’s decentralization through DVT.
The Fund is unique in that it is the first dedicated solely to DVT use cases, with partners emphasizing long-term support for projects that aid Ethereum’s decentralization as more stakers join the network.
DVT technology addresses Ethereum’s security and decentralization, similar to the early days of L2 implementations. However, DVT focuses on Ethereum’s security and decentralization, while L2s focus on transaction speed and cost reduction.
As Ethereum demands more decentralization, SSV’s DVT adoption positions it as the leading solution for security and decentralization needs. This unique advantage has gained the attention of investors and industry players, resulting in a bullish price surge.
SSV Network price prediction
In conclusion, the SSV Network has shown impressive price action in 2023, with its unique DVT-based staking solution attracting attention from investors and industry players alike.
However, it’s important to note that the cryptocurrency market remains highly volatile, and caution is advised when investing in any digital asset, including SSV.
As with any investment, conducting thorough research and understanding the risks before making any decisions is important.
Looking ahead, the upcoming Shanghai update and mainnet launch of the ssv.network in 2023 present exciting opportunities for developing DVT-based applications and advancing staking solutions.
With the SSV Network’s strong position in the Ethereum ecosystem, it will be interesting to see how it continues to perform in the coming months and years.