Over 570,000 Investors Moved in a Record Week for Ethereum Staking ether (ETH) according to tokens in the blockchain’s staking smart contract last week Dune Analytics Dashboard,
it’s worth over $1 billion ether Marked the fastest weekly movement of token and ETH deposits into staking contracts.
According to the dashboard, investors requested about 380,000 withdrawals. ETH Last week the coin was worth close to $700 million at current market prices.
This reflects a sharp decline in withdrawal requests from the week.
The first five days of staking Ether token withdrawals were enabled by the successful implementation of the so-called “Shapela” upgrade. Ethereum On April 12, Blockchain, withdrawal requests reached almost 1 million ETH tokens.
In fact, since staking ETH withdrawal requests were enabled just two weeks ago, withdrawal requests have surpassed new deposits of over 550,000 ETH, which is close to $1 billion at the current market cap.
However, thanks to the 50,400 per day limit on actual Ether token withdrawals (other ETH withdrawal requests enter a queue) and to the increase in deposits (which immediately enter the staking contract), staked ETH has since The total number of tokens has increased following the implementation of the Shepela upgrade.
According to on-chain analytics firm Glassnode, the total number of ETH tokens was 19.227 million, up more than 1.1 million since 2011.th April’s
Assuming that investors continue to deposit ETH into contracts faster than the 50,400 ETH withdrawal limit, which has largely happened over the past two weeks, then this number should keep rising.
Indeed, the added flexibility in the ETH staking process, which analysts say significantly reduces investor risk, is expected to entice large amounts of ETH into contract staking in the coming months and years.
Rival proof-of-stake layer-1 protocols such as Cardano have staking rates in the region of 60-70%.
Given the total ETH supply of 120.4 million, the staked Ether participation rate is currently only around 15.9%.
The daily staking ETH withdrawal limit may deter some ETH investors as there is no total flexibility regarding ETH holdings.
But this participation rate is still expected to increase substantially and may reach 40-50% at some point.
This means that there could soon be 50-60 ETH tokens per staking contract, a drastic reduction in the readily available supply on unstaked ETH.
it, with Deflationary Tokonomics of Ether (thanks a transaction fee burn mechanism), means that the price of Ether is poised to benefit from substantial deflationary tailwinds in the coming years.
Where next for ETH price?
The post-Shapella upgrade optimism that sent ETH/USD to new 11-month highs in the mid-$2,100s proved short-lived, with ETH then pulling back to trade higher alongside its early April levels of $1,800-$1,900. took.
In fact, ether halted a major short-term uptrend in the middle of last week, prompting calls for a retest of key downside support levels, such as the resistance-turned-support area around $1,700.
However, ETH’s strong rally above its 50-day EMA on Tuesday could be an early sign that the latest short-term market correction is underway.
ETH/USD saw a short-term correction similar to the 50DMA before reaching new highs in mid-February.
Short-term bulls may be eyeing yearly highs, although key upcoming macro risk events such as next week’s Fed meeting, jobs and ISM survey data could turn downside after this week’s US GDP and inflation reports. Works, if they make a meaningful difference to the larger narrative.