The Ethereum Staking Boom
The number of ETH locked in the Beacon Chain has reached an all-time high, indicating a significant surge in Ethereum staking. Currently, there are 38,829,631 ETH deposited on-chain, with a market valuation of $110,774,336,206 based on the current price of $2,848.93 per coin.
Ethereum’s Evolution and Impact on Price
In recent years, Ethereum has undergone significant changes, including the implementation of the Shapella Upgrade, which allows access to staked ETH and provides more flexibility for investors. Contrary to expectations that this upgrade would lead to the withdrawal of Ethereum and potentially collapse the network, the opposite has happened.
According to Dune Analytics data, there are currently 1,213,426 validators operating on the Ethereum mainnet. The staked Ethereum figure has a major impact on the price of the cryptocurrency.
Rise in Price and Sentiment
As more ETH is taken out of circulation through staking, it complements the deflationary features of the protocol and drives up the price of Ethereum. This has resulted in a price rally, with Ethereum reaching its highest price since early May 2022 at $2,848.93. The rally is also influenced by positive sentiment surrounding Bitcoin’s price increase and the possibility of a spot Ethereum ETF approval.
Ecosystem and ETF Sentiment
In addition to technical impacts, factors such as the sentiment surrounding Bitcoin’s rally and the debate over a potential spot Ethereum ETF approval contribute to Ethereum’s current rally. Market experts predict a 60% likelihood of approval for an Ethereum ETF in May when VanEck’s application is due for a final decision from the SEC. The emergence of an Ethereum ETF is expected to attract more institutional capital, further driving up the price of the asset.
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