I logged into the app in the evening to see what was happening with the crypto market, glanced at $BANK from @LorenzoProtocol, and was taken aback by the red number of minus 3.49%. The price is 0.0443 after falling from a maximum of 0.0462 to a minimum of 0.0437, and you know, this is no longer just a small correction, it's a significant downward movement that makes you think. But then I looked at the volumes — 24.45 million for BANK in a day, and realized that the project is alive, that this is not a quiet death, but normal volatility for a young token.
What always stresses me out about DeFi projects is the lack of understanding of how they actually work. You read about liquid staking, wrapped tokens, yield farming, and your head is a mess of terms. But with #LorenzoProtocol, I tried to dig deeper because if I’ve already invested money, I need to at least understand what it’s in. The essence is simple: you give your tokens to staking, receive a liquid token in return that you can use anywhere, and at the same time continue to earn rewards from staking. Brilliant, if you think about it, because before you had to choose.
The chart technically looks sad, I won't lie. All moving averages are pointing down: MA7 at 0.0442, MA25 at 0.0447, MA99 at 0.0453, and the price has traded below all of them. This is a bearish signal indicating that sellers are stronger than buyers, and the momentum is downward. The minimum of 0.0437 is now a key level; if it breaks down, the fall could accelerate to 0.04 or lower. But if it bounces back and returns above 0.045, then we can say that the correction is over.
I was chatting the other day with a colleague who is also in crypto; I asked him about Bitcoin liquid staking, and he says it’s the next big trend. Because Bitcoin is the largest asset in crypto, trillions of dollars are just sitting in wallets and doing nothing. Imagine if even a portion of that money starts working through liquid staking? It could change the entire industry, creating entirely new opportunities for earning on BTC. And @LorenzoProtocol is trying to realize this, bringing DeFi opportunities into the Bitcoin ecosystem.
Volumes show that trading activity is high, but the ratio of BANK to USDT is concerning — 24.45 million against 1.10 million. On one hand, this may mean that people are holding tokens and are in no hurry to convert to stablecoins, which is good. On the other hand, such volumes with a falling price could indicate distribution by early investors who are taking profits. And here it’s hard to understand what will prevail — the long-term faith of the community or short-term selling pressure.
I remember the first time I tried staking on Ethereum, I locked ETH for a year, and a month later I urgently needed money, and I couldn’t do anything. I sat looking at the locked tokens and thought: why couldn’t I somehow unlock them earlier? And liquid staking is the answer to this question; it’s a solution to a problem I experienced myself. Therefore, despite the price drop, I continue to believe in the concept because it addresses the real pain of real users.
I’m looking at the volumes at the bottom of the chart and see spikes of activity on red candles, which is technically a bad sign. Usually, when volumes rise during a decline, it indicates capitulation, when people give up and sell at a loss. But maybe it’s good because it means weak hands are leaving, and only those who truly believe in the project long-term remain. And when all the weak hands exit, the price might stabilize and start a new growth cycle.
I generally think that the problem with most DeFi projects is that they are too complicated for ordinary people. My mom will never understand what liquid staking is, how it works, and why it’s needed. And as long as crypto remains such a closed club for geeks and financiers, there will be no mass adoption. We need projects that simplify all these complex concepts and make them accessible to anyone. Maybe #LorenzoProtocol will achieve this over time, and maybe not, but the direction is right.
The current price of 0.0443 is psychologically difficult for me because I bought part of my position higher, and now I’m sitting at a loss. I could sell and lock in the loss, but that goes against my entire strategy. I am not a trader who catches every movement; I am an investor who believes in the long-term potential of the technology. So I will just hold and wait; maybe in six months the price will be 0.10, and I will laugh at my current doubts, or maybe it will be 0.02, and I will cry. Such is life in crypto; no one knows what tomorrow will bring.
#LorenzoProtocol @Lorenzo Protocol $BANK
