Ethereum’s ETH 2.0 Staking Skyrockets as Total Deposits Cross 30 Million ETH, Sparks Bullish Response
Ethereum’s ETH 2.0 staking has soared as the total value of deposits crosses the milestone of 30 million ETH. This significant increase in staking deposits reveals the growing confidence of long-term Ethereum investors in the platform’s viability. On-chain data indicates that the recent announcement of the Fed rate pause may have triggered a bullish response among Ethereum investors. As a result, the ETH spot market experienced a week-long price rally, which slowed down as traders sought to book early profits after the Fed rate pause announcement.
However, behind the scenes, long-term Ethereum investors ramped up their ETH 2.0 staking by an additional $126 million. This surge in staking deposits occurred ahead of the recent Fed meeting and brought the total value staked in ETH 2.0 contracts to 30 million ETH. This is a significant milestone since Ethereum transitioned to the Proof of Stake (PoS) consensus, indicating the increased security of the network.
The milestone of 30 million ETH being staked means that over $48.6 billion worth of value is locked up on the Ethereum Beacon Chain. It also implies that more than 25% of the total circulating supply of Ethereum is locked up in smart contracts. This could potentially accelerate the price upswing of Ethereum during the next bull rally.
The increase in staking deposits can be attributed to the yield earned from ETH 2.0 staking, which is considered highly competitive compared to alternative traditional finance asset classes. The requirement of 32 ETH to participate in staking means that most participants are large institutional entities and high-net-worth crypto whales. This boost in confidence from institutional investors could trigger an Ethereum price upswing in the mid to long term.
Looking at the price prediction for Ethereum, the recent dip in market supply due to staking could propel the price towards $3,000 if it attracts a similar level of demand. The In/Out of Money Around Price data also supports this bullish stance, indicating that the bulls will face less resistance on the road to $3,000 if Ethereum scales the $2,100 obstacle.
However, if the price drops below $1,500, the bears could seize control. But considering the number of addresses that bought Ethereum at the minimum price of $1,526, if these addresses choose to cover their positions rather than sell, the price could rebound. It is crucial to keep an eye on these support and resistance levels to gauge the future direction of Ethereum’s price.
Overall, the significant increase in ETH 2.0 staking deposits and the milestone of 30 million ETH being staked indicate growing confidence in Ethereum’s long-term viability. With a substantial amount of value locked up on the Ethereum Beacon Chain, the platform’s security is enhanced, and this could potentially lead to an upswing in Ethereum’s price during the next bull rally.
