$PSP tokens are the governance tokens of the Paraswap DAO, the organization overseeing the maintenance and running of the Paraswap protocol. The protocol is a decentralised exchange (DEX) aggregator by design and it integrates with popular DEXs like Uniswap, Sushiswap, and Curve.
In this brief publication, I shall look at what happens to $PSP tokens after they are bought on the crypto capital markets. When PSP is bought, there are many things that a user can choose to do with it. They can hold, sell, or stake in PSP denominated pools.
Observe the donut chart below which shows the percentage of $PSP buyers who have held or sold. We can see that 49.6 of buyers have held which is about half.
Next, let us look at the staking history of buyers over time in the line chart below. We can see that buyers were more active stakers in the early days of the protocol but that has since declined. What we can see now is that we can see staking activity once in a while but there is no real trend to it.
It's a good metric that at least half of the PSP buyers are holding while the rest are either selling or staking. Overall I believe it is good for the $PSP token price action.