Ethereum (ETH) Beacon Chain Secures $7.7B Inflows & Breaks Records

Ethereum (ETH) Beacon Chain Secures $7.7B Inflows & Breaks Records


Ethereum’s Beacon Chain sees significant inflows despite initial predictions of outflows following the Shanghai Upgrade, with over $7.7 billion worth of Ethereum deposited into the contract, as staking services and liquid staking tokens grow in popularity for earning rewards on ETH holdings.

Ethereum’s (ETH) Beacon Chain has seen whole lot of inflows since staking withdrawals were enabled on April 12th, with over $7.7 Billion worth of Ethereum (ETH) deposited into the contract. This is regardless of some initial predictions of a flood of outflows following the Shanghai Upgrade.

The Beacon Chain is a core component of Ethereum (ETH) 2.0, the following generation of the Ethereum (ETH) blockchain tech. It is a Proof-of-Stake (PoS) blockchain tech in charge of coordinating validators, validating transactions, and proposing and finalizing blocks in the Ethereum (ETH) network.

Ethereum (ETH) Beacon Chain Defies Critics

According to the research company Arkham Intel, The total amount of deposited Ether now exceeds the April 12th balance by around 1.25 Million Ethereum (ETH), with daily deposits varying broadly, sometimes reaching up to 225,000 Ethereum (ETH) (over $400 Million in a single day). The inflows chart shows a noticeable spike following the Shapella upgrade, which coincided with the full enablement of withdrawals from the Beacon Chain.

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At the forefront of these deposits is Lido’s stETH address “0xae7”, which has consistently been the top depositor with a lifetime deposit amount of well over $15 billion, accounting for over a third of the Ethereum (ETH) locked in the deposit contract, reports by Arkham. 

After the  enabling of stETH Unstaking, Lido’s deposit address has now been transferred to a new address, “0xfdd”, which has already become the 4th deposit address since April, with a total deposit amount of over 214,000 Ethereum (ETH), or over $386 Million, regardless of only being active during the previous 3 days.

Furthermore, the expansion of Ethereum (ETH) 2.0 and the Beacon Chain has been accompanied by a surge in staking services and Liquid Staking Crypto Tokens with Frax. This crypto stablecoin project intends to provide a more stable and reliable alternative to traditional fiat currencies, being one of the notable players in this space. Frax offers a product was known frxETH, which allows users to stake their Ethereum (ETH) and receive liquid-staked Ethereum (ETH) crypto tokens (sfrxETH) in return.

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Despite the fact that Frax ranks 14th on the leaderboard of depositors, their total stake of 72,400 Ethereum (ETH) since April 1st represents a whole lot of portion of their total Frax Ethereum (ETH) supply, accounting for 33.6 percent of the total frxETH supply of 215,000.

The expansion of staking services and liquid staking crypto tokens is a positive development for the Ethereum (ETH) ecological system, as it provides users with more options for earning bonus on their Ethereum (ETH) holdings. This growth is likewise a testament to the popularity of Ethereum (ETH) 2.0 and the Beacon Chain, which offer a more efficient and sustainable network for decentralized applications.

ETH’s Price Action Suggests A Bearish Future

According to Michael Van de Poppe, a trending digital currency analyst, ETH’s price resembles more of a bear flag than a consolidation pattern. He thinks that the Relative Strength Index (RSI) is higher on Ethereum (ETH), and when combined with the chart pattern, it is likely that Ethereum (ETH) will experience another leg down, making it more potential than Bitcoin (BTC) (BTC).

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Van de Poppe notes that that for him to change his mind about Ethereum (ETH), the resistance level that has to  be broken is $1,867. Nonetheless, if the candle closes below $1,735, there is a high possibility of to continue toward the range of $1,675 to $1,712, with the lower $1600 as the following potential support level.

Regardless of the present short-term uncertainty in the digital currency market, the longstanding outlook for Ethereum (ETH) and the broader digital investment industry remains positive. Nonetheless, while it can be challenging to predict short-term price movements, Michael Van de Poppe’s analysis implies that the short-term outlook for Ethereum (ETH) could be bearish.

Ethereum

Featured image from Unsplash, chart from TradingView.com 

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