Staking and reinvestment as a mechanism for maintaining the base
Staking and reinvestment are often perceived as a source of growth. The expectation is simple: interest accrues, meaning capital should increase. But in phases of pressure, the market uses this income differently — it directs it to compensate for the price decline.
Interest continues to come in, but its effect is visually almost imperceptible. The income that could have provided a gain is spent on maintaining the current level. It resembles a situation where all efforts are directed at maintaining the position rather than moving forward.