Source: Vladimir Kazakov – Adobe Stock
- Zodia Custody and ParityTech will provide institutional access to the Polkadot ecosystem along with offering custodial services.
- Although the Polkadot ecosystem has witnessed a surge in staking, investors have raised concerns over the diminishing staking rewards.
Liquid staking in the decentralized finance (DeFi) market has played a major role in improving the total value locked (TVL) across different DeFi protocols. In a notable development, the Polkadot blockchain network has stepped into the liquid staking process through a partnership between ZodiaCustody and paritytech.
The goal of this partnership is to improve the staking landscape by offering institutional access to the Polkadot network. In addition to staking, this partnership will also provide essential custody services to bolster the Polkadot ecosystem.
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🚨 A new long-term strategic partnership between @ZodiaCustody and @paritytech will enable institutional access – including staking – to the Polkadot ecosystem! pic.twitter.com/BO8hocrI73— Polkadot (@Polkadot) September 13, 2023
Zodia Custody will also contribute to the advancement and expansion of the Polkadot ecosystem by engaging in educational efforts, collaborative research and development, and supporting various global initiatives undertaken by Parity and Polkadot.
With Zodia Custody offering secure market access and maintaining a level of digital asset custody services akin to those used by banks, financial institutions will have the capability to operate in a highly regulated manner with a heightened emphasis on security.
The incorporation of institutions into the Polkadot ecosystem represents a significant milestone in the broader adoption of Web3 technology. Custody, in particular, serves as a pivotal element that can facilitate the connection between traditional finance and Web3.
As Polkadot continues to garner increased attention from enterprises and institutions, the partnership between Zodia Custody and Parity stands to facilitate the seamless and more efficient integration of Web3 technology, further promoting its adoption.
Polkadot Staking Grows, DOT Sentiment Improves
In the past month, staked DOT has witnessed continuous growth, although this expansion has been accompanied by diminishing reward rates. The declining reward rates have prompted inquiries about the sustainability of the staking model and its attractiveness to users.
Additionally, DOT’s sentiment in the social sphere has experienced a downturn in recent weeks. This dip in sentiment has the potential to ripple through market sentiment and investor confidence, influencing decisions made by both retail and institutional participants.
However, despite these challenges, DOT has maintained a strong presence in terms of social engagement. Engagement levels have surged by 64%, and mentions related to DOT have increased by 16.4%, indicating that the cryptocurrency has remained a subject of interest for both enthusiasts and investors.
Courtesy: Santiment
During the same period, the price of DOT has declined, moving from $5.05 to $4.149 at the time of this writing. Furthermore, development activity has decreased, suggesting a potential slowdown in new network developments.
Additionally, the price volatility of DOT has increased, which could impact the trading environment for the cryptocurrency and potentially influence its adoption and long-term prospects.
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