- Ethereum staking reaches 35M ETH, which is indicative of high investor confidence in the network over the long run.
- Over $100B is now locked in ETH staking, tightening the token supply of the token.
- The security and decentralization of the Ethereum network are rising due to the increased institutional use and accessibility.
Ethereum staking has hit a major milestone. The amount of ETH locked in staking contracts reached 35 million tokens. This represents a new all-time high for the network.
The data comes from CryptoRank and CryptoQuant, shared in an X post by Merlijn The Trader. The chart shows steady growth over the past year.
Ethereum Staking Hits New Milestone as Institutional Confidence Grows
The timing is noteworthy. ETH price has been climbing recently after a difficult period. The token hit lows around $1,500 earlier this year. Now, it trades above $3,000 again.
Source: X (@MerlijnTrader)
Smart investors appear to be positioning themselves strategically. While casual traders focus on daily price movements, larger players lock up tokens.
The chart reveals an interesting pattern. Staking amounts tend to increase during market uncertainty. Such actions are an indication of increasing optimism towards the Ethereum network in the long term.
In September 2022, Ethereum adopted a proof-of-stake agreement. This transformation got rid of energy-demanding mining practices. Rather, validators burn ETH in order to gain access to the transactions and network protection.
The staking rewards are normally 3-6 percent annually. The milestone of 35 million is a huge capital commitment. This will be a locked value of more than $100 billion at its current price. This is a bullish indication to market analysts. With the supply pressure, this makes the token scarce, and hence its price may increase.
The Increasing Maturity of the Network Boosts Long-Term Adoption
Its price has gone up due to the surplus demand as compared to the supply. Early holders were reluctant to lock tokens. But confidence has become high now, and participation in staking is massive.
Staking has been made to be more accessible through technical enhancements. Staking is possible via different platforms and exchanges. This decreases obstacles for common investors.
Increased participation in staking implies improved security and decentralization. These factors contribute to the attraction of a larger number of developers to the network.
In the future, the trend is probably going to persist. Cryptocurrency markets are becoming popular with more institutional players. Staking is an option to receive rewards on digital currency.
With increased awareness and better tools, it can be expected that even more tokens will be staked. It may lead to a longer-term bullish pressure on the Ethereum price and enhance the infrastructure of the network.
Also Read: Ethereum’s Bearish Trend: Can $2,200 Hold or Will ETH Fall Further?
