Staked Token Supply Doesn’t Correlate with Price, Says Messari Analyst
Some crypto pundits believe a larger amount of tokens staked in Proof-of-Stake (PoS) blockchains could push the price upwards by reducing the circulating supply, making the remaining tokens more valuable. Announcements correlate with price though
In an April 1 blog post, Wilson Withiam, a researcher at the Messari analytics team, provided an analysis of 21 popular staking networks like Cosmos (ATOM) and Tezos (XTZ) in order to examine the level of correlation between the amount of staked tokens and price changes.
He found prices of the analyzed tokens are actually more correlated with project-related announcements than the amount of liquid supply of staked tokens. Indeed, Dash was among the top performers, with its price surging nearly 40% over a week in March after the Dash Core Group released significant updates for its platform, as Cointelegraph reported.
