Ether staking deposits touch $85B, 25% of circulating supply now locked up

The Rise of Staked Ether in the Beacon Chain: A Bullish Sign for Ethereum’s Network

The amount of staked Ether in the Beacon Chain has surpassed 30 million ETH, equivalent to over $85 billion, locking up nearly a quarter of the total circulating supply. With 943,974 active validators currently on the Beacon Chain, the network is experiencing significant growth and adoption.

February has been a bullish month for Ethereum, with a surge in both staked ETH and price. In just two weeks, investors have deposited 600,000 ETH into Ethereum 2.0 staking contracts, while the price of ETH reached yearly highs above $2,800. As of writing, ETH is trading at $2,774.

The fact that a quarter of the circulating supply is locked in proof-of-stake contracts is a positive sign for Ethereum’s network. This increase in staked ETH not only enhances the network’s security and efficiency, but it also reduces the supply of ETH available for trading on exchanges, creating a potential supply shortage as demand continues to grow.

The Impact of Web 3.0 on the Crypto Industry

As the crypto market continues to evolve, it’s important to understand the differences between web 1.0, 2.0, and 3.0. Web 1.0 was the first generation of the internet, where users could only consume information. With the rise of Web 2.0, users could interact and contribute to online content. Now, with the emergence of Web 3.0, we are seeing a shift towards decentralized, user-owned platforms and applications.

One of the main differences between Web 3.0 and its predecessors is the use of blockchain technology. This allows for a more secure and transparent network, where users have control over their data and can participate in decision-making processes. Additionally, Web 3.0 enables the use of smart contracts, which automate and streamline transactions without the need for intermediaries.

With the rise of Web 3.0, there has been a growing interest in obtaining cryptocurrencies. There are various ways to acquire crypto, such as buying it on exchanges, mining, or participating in staking and lending programs. As the crypto industry continues to expand, it’s important to stay informed and understand the differences between Web 1.0, 2.0, and 3.0 to fully grasp the potential of this emerging technology.

The Evolution of the Ethereum Ecosystem: From PoW to PoS

The merging of the original Ethereum proof-of-work (PoW) chain with the Beacon Chain in September 2022 marked the introduction of PoS to the Ethereum ecosystem. This allowed validators to stake ETH and earn an annualized rewards rate of 4%.

The Ethereum PoS network is powered by a group of validators who are required to stake 32 ETH. Initially starting with 21,063 validators, the Beacon Chain now boasts over 900,000 validators.

Following the Shanghai upgrade in April 2023, validators were able to withdraw their staked ETH. Many critics predicted a high demand for withdrawals, but within a week of the upgrade, the amount of newly staked ETH surpassed withdrawals. This indicated that validators were choosing to restake their ETH for passive income.

The Impact of Institutional Demand and Upcoming ETFs on ETH

The recent rally in the price of ETH has caught the attention of many, with the cryptocurrency making double-digit gains and approaching the $3,000 mark. With the approval of spot Bitcoin exchange-traded funds in the United States, all eyes are now on spot Ether ETFs and whether they will also be approved by the U.S. Securities and Exchange Commission. The introduction of spot Ether ETFs could have a significant impact on the second-largest cryptocurrency, as institutional demand for ETH adds to the declining market supply.

Categorized in:

Tagged in: