Ethereum Staking Hits 25% of Supply, Boosting Market Stability
Ethereum Staking: Over 25% of Supply Involved
Ethereum staking is becoming increasingly popular. According to on-chain research company IntotheBlock, the participation rate in Ethereum staking recently surpassed the 25% mark. This means that about a quarter of the circulating ETH supply is involved in the network.
Staking as a Source of Security and Income
The high participation in staking is a positive development as it contributes to the security and decentralization of the network. In addition to improving network security, Ethereum staking offers users the opportunity to earn passive income from their deposits.
Shapella Upgrade Promotes Staking
Staking, which was considered risky due to uncertainty about payouts, received a boost from the Shapella upgrade last year. Since the introduction of this upgrade, which allows the release of ETH, the staked supply has more than doubled and is currently at 38.7 million ETH.
ETH as a Long-Term Investment
These trends show that ETH holders prefer stable returns over risky market trading. They also reflect the changed perception of ETH as a long-term, yield-bearing investment, rather than a means for quick profits in the secondary market.
Impact on the ETH Market
The increasing illiquidity of ETH could have positive effects on market stability. The high volatility of cryptocurrencies has deterred traditional investors in the past. With fewer coins in circulation, however, ETH could become less volatile, which could increase demand from conservative traders.
Outlook
There are currently no signs of market saturation. The number of validators intending to join the network reached its highest level in four months on February 12th. This could suggest that interest in Ethereum staking remains strong and could continue to increase in the near future.
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Sources: IntotheBlock, Glassnode, validatorqueue.com, CoinMarketCap
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Price | $3,343.97 |
| 24h % | 9.16 % |
| 7d % | 6.74 % |
| 30d % | 27.62 % |
| 60d % | 29.89 % |
| 1y % | 69.52 % |
| Market Cap | $403,770,513,232.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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