- Ethereum staked on the ETH2 deposit contract has hit a new all-time high of 15.9 million, accounting for more than 13% of the total supply.
- Following the mid-September Merge when ETH transitioned from proof-of-work to proof-of-stake blockchain, the number of small Ethereum holders has climbed.
- Ethereum price yielded nearly 31.8% gains for holders over the past month, following Bitcoin’s massive rally.
Ethereum, the second-largest blockchain, hit a new milestone on January 27, nearly four months after its transition to a new consensus mechanism. Over 15.9 million ETH tokens have been staked on the Beacon Chain.
The massive spike in ETH staked on the blockchain could act as a “bullish catalyst” for the altcoin.
Also read: Here’s why Ethereum-killer Cardano whales are shedding their ADA holdings
Ethereum staked on Beacon Chain hits key milestone
Ethereum tokens staked on the deposit contract have climbed to 15.9 million tokens. This is a new all-time high. Within nearly four months of Ethereum’s Merge, where the smart contract network transitioned from proof-of-work to proof-of-stake, ETH has hit an important milestone.
A large amount of ETH staked is due to a rise in the number of deposits and staking.
— CryptoQuant.com (@cryptoquant_com) January 27, 2023
Chart https://t.co/Xiq7lwgVQ6 pic.twitter.com/agE4IIB5MY
Alongside a spike in ETH deposits on the staking contract, network activity climbed consistently. Based on data from crypto intelligence tracker CryptoQuant, there is a spike in active addresses on the demand side for Ethereum.
Ethereum Active Addresses on CryptoQuant
Interestingly, the count of small-sized Ethereum holders has climbed from 1.57 million to 1.73 million, a 10.4% QoQ increase. Following the Merge update, this is a bullish development for ETH holders.
Nearly 13% of Ethereum’s supply is staked, locked in the ETH2 deposit contract. This reduces the altcoin’s supply in circulation and keeps these tokens off exchanges, easing the selling pressure on the second-largest cryptocurrency.
The native token of the smart-contract blockchain network has yielded 31.8% gains for holders since December 31. Despite the recent decline in ETH’s price, a 3% week-on-week drop in the altcoin, the latest developments could fuel a recovery.
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
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.