Good News for Ethereum Significant Growth in Online Staking

Byadmin

Jul 2, 2024
Good News for Ethereum  Significant Growth in Online StakingGood News for Ethereum Significant Growth in Online Staking

According to the latest on-chain data, Ethereum staking has seen significant growth over the past month, marking positive news for the network. CryptoQuant reports that since May 20th, 59,894 new participants have joined Ethereum’s staking network. This surge coincides with increased chances of approval for a spot Ethereum ETF, as indicated by analysts James Seyffart and Eric Balchunas of Bloomberg, up to 75%.

Additionally, the influx of new stakers is likely to reduce circulating Ethereum supply, as these validators must lock up a substantial amount of ETH. Data from Dune Analytics shows that currently over 33 million ETH are staked, representing nearly 28% of the total cryptocurrency supply.

Reducing circulating Ethereum supply is a bullish signal, helping to alleviate potential selling pressure on the token. This effect is compounded as demand for Ethereum increases, with ETH price responding to principles of supply and demand.

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Ether’s distribution also supports the bullish outlook. Market data from IntoTheBlock reveals that around 78% of Ethereum supply, including staked ETH, is held by long-term holders—those who have held the token for over a year.

This concentration of supply among long-term holders suggests that these entities are unlikely to sell their holdings soon. This is particularly crucial given the expected increase in institutional demand for ETH once spot Ethereum ETFs begin trading. These ETFs are anticipated to start trading soon, potentially after July 8th, as forecasted by Balchunas, despite earlier predictions for a July 2nd launch being adjusted due to SEC delays.

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