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HomeNewsUnlocking Ethereum's Potential: A Quarter of Supply Staked, Prices Surge

Unlocking Ethereum’s Potential: A Quarter of Supply Staked, Prices Surge

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  • Ethereum demonstrates its growth potential by achieving 25% of its supply being staked by 936,849 validators.
  • Lido Finance leads as the preferred platform for ETH staking, capturing 31.8% of the market with attractive rewards.

Ethereum has once again demonstrated its ability to attract significant investment. Nearly a year after the Shapella update, 25% of ETH supply has been staked , marking a point of growing interest among investors and validators. This development underscores confidence in Ethereum’s sustainability and long-term growth potential.

According to recent data, using the Nansen dashboard, it has been confirmed that 30 million ETH, equivalent to 25% of the total supply, is currently in staking. This staking involves 936,849 validators, reflecting a broad base of support and participation in the network.

nansen-eth-Full-blown-staking
Source: Nansen

The 2023 Shapella upgrade marked the beginning of large-scale staking in Ethereum, although this activity was already present since the September 2022 merger. The transition from miners to validators to secure and maintain the network has been a structural change for Ethereum, directly affecting the way transactions are processed and verified.

The interest in staking is not only a network security issue, but also an investment opportunity. Validators receive rewards for their participation, with annual interest rates ranging from 6% to 15%. However, there is an entry barrier of 32 ETH to become a validator, which limits this activity to investors with sufficient capital.

nansen-eth-Full-blown-staking
Source: Nansen

Lido Finance has emerged as the platform of choice for ETH staking, capturing 31.8% of the market. This is due to its ease of use and economic incentive, as the average price of ETH in staking is $2,022, providing gains from both the rising altcoin price and staking rewards.

Despite a decline in staking deposits at the start of January, the last week of the month saw a turnaround, with a significant increase in participant interest. This uptick aligns with an increase in the price of ETH to $2,435, coinciding with the time when staked supply reached 25%.

In addition, Ethereum has maintained its deflationary status, with a supply change of -3342.67 ETH, indicating a reduction in the total amount of ETH available. This aspect is essential for the long-term valuation of ETH, as limited supply with increasing demand can propel the price upwards.

eth-ethereum-ultra-sound-money
Source: ultra sound money

Investors and traders should keep an eye on upcoming settlement and resistance levels, with $2,520 and $2,750 as critical points. These levels not only represent investment opportunities, but also indicators of financial health and interest in Ethereum as a long-term investment.

At the moment, at the time of writing the price of ETH is at $2,484.90

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628
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