Ethereumโs (ETH) Beacon Chain has seen wholeย lotย of inflows since staking withdrawals were enabled on April 12th, with over $7.7 Billion worth of Ethereumย (ETH) deposited into the contract. This is regardlessย of some initial predictions of a flood of outflows following the Shanghai Upgrade.
The Beacon Chain is a core component of Ethereumย (ETH) 2.0, theย following generation of the Ethereumย (ETH) blockchainย tech. It is a Proof-of-Stake (PoS) blockchainย tech inย chargeย of coordinating validators, validating transactions, and proposing and finalizing blocks in the Ethereumย (ETH) network.
Ethereumย (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 Ethereumย (ETH), with daily deposits varying broadly, sometimes reaching up to 225,000 Ethereumย (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.
At the forefront of these deposits is Lidoโs stETH address โ0xae7โ, which has consistently been the top depositor with a lifetime deposit amount of well over $15 billion, accounting for over a third of the Ethereumย (ETH) locked in the deposit contract, reportsย by Arkham.ย
Afterย theย enabling of stETH Unstaking, Lidoโs deposit address has now been transferred to a new address, โ0xfddโ, which has already become the 4th deposit address since April, with a total deposit amount of over 214,000 Ethereumย (ETH), or over $386 Million, regardlessย of only being active duringย theย previous 3 days.
Furthermore, theย expansion of Ethereumย (ETH) 2.0 and the Beacon Chain has been accompanied by a surge in staking services and Liquid Staking Cryptoย Tokens with Frax. This cryptoย stablecoin project intendsย 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 wasย known frxETH, which allows users to stake their Ethereumย (ETH) and receive liquid-staked Ethereumย (ETH) cryptoย tokens (sfrxETH) in return.
Despiteย theย factย that Frax ranks 14th on the leaderboard of depositors, their total stake of 72,400 Ethereumย (ETH) since April 1st represents a wholeย lotย of portion of their total Frax Ethereumย (ETH) supply, accounting for 33.6 percent of the total frxETH supply of 215,000.
Theย expansion of staking services and liquid staking cryptoย tokens is a positive development for the Ethereumย (ETH) ecologicalย system, as it provides users with more options for earning bonus on their Ethereumย (ETH) holdings. This growth is likewise a testament to the popularity of Ethereumย (ETH) 2.0 and the Beacon Chain, which offer a more efficient and sustainable network for decentralized applications.
ETHโs Price Action Suggests A Bearish Future
According to Michael Van de Poppe, a trending digitalย currency analyst, ETHโs price resembles more of a bear flag than a consolidation pattern. He thinksย that the Relative Strength Index (RSI) is higher on Ethereumย (ETH), and when combined with the chart pattern, it is likely that Ethereumย (ETH) will experience another leg down, making it more potential than Bitcoinย (BTC) (BTC).
Van de Poppe notesย that that for him to change his mind about Ethereumย (ETH), the resistance level that hasย toย be broken is $1,867. Nonetheless, if the candle closes below $1,735, thereย is a high possibilityย of toย continue toward the range of $1,675 to $1,712, with the lower $1600 as theย following potential support level.
Regardlessย of theย present short-term uncertainty in the digitalย currency market, the longstanding outlook for Ethereumย (ETH) and the broader digital investment industry remains positive. Nonetheless, while it can be challenging to predict short-term price movements, Michael Van de Poppeโs analysis impliesย that the short-term outlook for Ethereumย (ETH) couldย be bearish.
Featured image from Unsplash, chart from TradingView.comย
