- Ethereum staked in the deposit contract climbed to 29.37 million, hitting a new all-time high on January 28.
- Ethereum in circulation is on a decline with dwindling exchange supply and rising volume of staked Ether.
- ETH price observed an 8% decline in the past week.
Ethereum’s supply in circulation is on a decline as ETH staked in the deposit contract rises and on exchanges drops. Traders are likely holding on to their Ether, contributing to likely decrease in selling pressure.
ETH price could recover from its slump after 8% weekly losses for holders.
A quarter of Ethereum’s supply is staked
According to CryptoQuant data, staked Ethereum supply climbed to 29.37 million on January 28. This marks a new all-time high in terms of staked Ether supply since the launch of the deposit contract.
Ethereum: Total Value Staked. Source: CryptoQuant
Leon Waidmann, editor and analyst at BTCEcho, notes that a quarter of Ethereum’s supply is staked. The analyst comments on how this metric supports the bullish potential of ETH. The analyst identified that Ethereum’s dwindling supply, strong base of holders and increasing trust could fuel the altcoin’s gains in the ongoing cycle.
A QUARTER of all #Ethereum is now STAKED!
— Leon Waidmann | On-Chain Insights (@LeonWaidmann) January 29, 2024
That's not just a number - it's a MASSIVE vote of confidence in the long-term potential of #ETH!
Why's it bullish?
It means:
Less supply on the market
Strong HODLer base
Growing trust in #ETH's ecosystem pic.twitter.com/VpanirslUh
According to Santiment data, the supply on exchanges has nosedived to 10.32 million, close to its six-month low. Typically, a decrease in exchange supply is equated with reduced selling pressure on the asset and room for price gains.
 [18.04.03, 29 Jan, 2024]-638421315190199931.png)
Ethereum supply on exchanges. Sources: Santiment
Network growth, another on-chain metric, shows bullish divergence. While ETH price dropped between January 16 and 29, network growth has increased, as seen in the chart below. The bullish divergence supports a bullish thesis for Ethereum price.
 [18.05.15, 29 Jan, 2024]-638421315616177555.png)
Ethereum network growth. Source: Santiment
Historically, January to May have been the best months for Ethereum in terms of returns. The altcoin has observed double-digit gains in these months, on average. If history repeats itself, combined with bullish on-chain metrics, Ethereum price could recover from its recent slump.
Ethereum monthly returns. Source: DaanCryptoTrader’s tweet on X
At the time of writing, ETH price is $2,255 on Binance.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.