Ether Staking Deposits Touch $85B

Ethereum recent milestone include over 30M Ether staking on the Beacon Chain with over 25% of the total supply in circulation.

The entire quantity of Ethereum that has been staked in the Beacon Chain has reached 30,206,801 ETH, which is worth more than $85 billion. This is over 25 percent of the total supply currently in circulation.

There are currently 943,974 validators that are actively participating in the beacon chain. Investors placed an additional 600,000 ETH into Ethereum 2.0 staking contracts in February, making the month of February a bullish month for the Ethereum network.

This occurred between February 1 and February 15. In February, the price of Ethereum (ETH) reached new yearly highs that were higher than $2,800. At the moment, it is trading at $2,774 per share.

A bullish sign for the Ethereum network is the fact that proof-of-stake (PoS) contracts have locked up a quarter of the total supply that is currently in circulation. The higher amount of Ether staking has contributed to the network’s increased efficiency and safety of the network.

As a result, the supply of Ethereum that is available for trading on exchanges has decreased as a result, resulting in a reduced supply despite the increased demand. Proof-of-stake was first brought to the Ethereum ecosystem by the Beacon Chain.

This occurred in September 2022, when it was combined with the original Ethereum proof-of-work (PoW) chain, which made it possible for validators to Ether staking. Ether staking is currently eligible for a 4% annual rewards.

Validators are the people who administer the Ethereum proof-of-stake network. To participate, they had to stake 32 ETH into the smart contract. The Beacon Chain started with 21,063 validators and has since grown to include more than 900,000 validators.

Validators could withdraw their staked Ethereum after the Shanghai upgrade, which took place in April 2023. There were a lot of people who were skeptical and thought that there would be a lot of people calling validators to withdraw their assistance.

Nevertheless, within a week following the Shanghai upgrade, the number of Ether staking exceeded the number of withdrawals which indicated that validators were restaking their ETH to generate passive revenue.

A great deal of progress has been achieved by the price of ETH over the past few weeks, with advances in the double-digit range and an eye toward the $3,000 mark.

As a result of the approval of the spot Bitcoin ETF, all eyes are currently focused on the spot Ethereum ETFs and whether or not they will also receive approval from the Securities and Exchange Commission.

Spot ETH exchange-traded funds have the potential to be a significant driver for the second-largest cryptocurrency, as they can generate extra-institutional demand amid a decreasing market supply as a result of Ether staking.