stETH vs. ETH

    This dashboard investigates to what extent the price of stETH differs from ETH over time and the causes.

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    Introduction

    In theory stETH and ETH should follow the same price as stETH is minted in equal amount of ETH staked.

    However, the data shows that is not always true.

    This dashboard investigates to what extent the price of stETH differs from ETH over time and what influences it.

    Results

    The graph below shows the price of ETH and stETH in hourly basis.

    We can see not always the two are the same.

    The graph below shows the difference between prices over time. We can see that since October 2021 the difference has become more stable than the past. Moreover, the difference overall has been decreased since January 2022.

    However, in some points the difference reach to even $300.

    1- price difference and ETH price

    The graph below shows how the average daily price have been changed over time.

    First of all we can see that in overall the difference is lower than hourly. Also we can see no huge sparks.

    This may support the idea that sudden changes in ETH price is adjusted through swapping by delay.

    There are two explanations for these differences:

    "stETH token balances are pegged 1:1 to the ethers that are staked by Lido". However, as the unstaking of ETH is not possible, the price is determined in the market. Therefore the cause of the difference would be:

    1- the sudden change of price in ETH.

    2- the supply of stETH is high or low.

    2- price difference and stETH circulating supply

    The graph below shows how daily supply of stETH has been changed over time.

    We cannot see significant correlation with sparks in supply and price difference. It needs further statistical analysis.

    However, in the periods that supply is low the difference is at high level. See for instance, March 2021.

    Conclusion

    This dashboard investigates the price difference of ETH and stETH which should be theoretically 0.

    First of all the difference has been found. The cause of the difference would be the activities on secondary market.

    The data shows that the supply of stETH is in some cases correlated with the difference. However, whether this causes the difference is a question to be investigated.