long dormant ether whale that parted Ethereum initial coin offeringICO) can be about Part a massive 32,015 ETH Token, according to on-chain analytics-focused Twitter account @lookonchain.
ICO participants staked 48,992 ETH back in October, ending six years of inactivity at that time. According to @lookonchain, the whale Earlier this week, 32,015 ETH tokens were moved to a new address that whales believe may be bettors.
Ethereum ICO whales received 120,000 ETH tokens in three different wallets at the genesis of the Ethereum mainnet in 2015. If they stake another 32,015 tokens, it means that the whales would have staked 67.5% of the 120,000 tokens they received in the Ethereum ICO.
Leads to more ETH staking
The whales mentioned above reflect a shift in the ETH market towards (possible) staking a larger portion of their ETH holdings. ETH staking made possible for the first time beacon series Back in late 2020.
But so far, most ETH owners have chosen not to stake their tokens, despite attractive yields of around 7-8% for node operators and 4-5% for staking pool participants.
This is because, at this time, the staked ETH tokens cannot be withdrawn. According to Ethereum, the lack of flexibility in withdrawing staked ETH was to protect the integrity of the network as it transitioned from proof-of-work to proof-of-stake.
But that transition is now complete (“Sicknesshappened last September). And Ethereum developers are working on the next major upgrade to the blockchain ecosystem, the so-called “Shanghai” hard fork, which is currently scheduled to happen before the end of March.
The upcoming upgrade will allow withdrawal of staked ETH for the first time. While withdrawals will not be instant, the shift towards greater withdrawal flexibility is attracting more ETH owners to stake.
Since September 2022, when the merge took place, the number of ETH staked has increased from approximately 2.7 million ETH to 16.2 million, meaning that approximately 13.5% of the ETH supply is currently locked in staking. It is still a far cry from Ethereum rival Cardano’s participation on the blockchain, which has a participation rate of over 70% for flexible withdrawals. But the trend seems to be towards increasing participation.
How high staking participation could drive up the price of ETH
Staking is in itself a positive for the price of ETH – why own a cryptocurrency that offers no returns when you can own a cryptocurrency that provides predictable yields, many crypto investors can ask.
But till now, the lack of flexibility in withdrawals was scaring off investors who valued liquidity over a stable yield. Now ETH investors can have (close to) both. As ETH participation increases, there are a few reasons why ETH should be promoted.
Firstly, it incentivises HODLing, guaranteeing HODLers to receive at least 5-8% returns (depending on whether they are a node operator or a staking pool participant) regardless of market conditions .
Considering that most people who are attracted to staking given its new flexibility are HODLing their ETH tokens, this also results in a decrease in the generally available supply of ETH tokens. Ether buyers will essentially make offers for sale from a small pool of willing sellers.
Many analysts believe that the shift to increased participation could be a major driver of long-term appreciation in ETH price. As crypto matures as an asset class and price volatility becomes commonplace in traditional financial markets, many expect major financial institutions to become increasingly attracted to ETH staking, with some considering ETH the bond of the crypto universe. refer to as.
Other drivers of long-term ETH appreciation are expected to be factors such as continued efforts to upgrade the blockchain (sharding could make Ethereum more scalable later this year), its continued mainstream adoption (non-zero balance addresses should reach 100 million soon) and the fact that it is now a deflationary asset.
ethereum options
If you are looking for ETH as well as other high-potential crypto projects, we review the Top 15 Cryptocurrencies for 2023, as analyzed. crypto news Industry Talk Team.
The list is updated weekly with new altcoins and ICO projects.
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