Over 33% of Ethereum’s Supply is Now Being Staked, Data Shows

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As a researcher with a background in blockchain technology and data analysis, I find the surge in Ethereum (ETH) staking to be an intriguing development. The fact that the amount of ETH staked within Ethereum 2.0 has reached a new all-time high of 47.38 million ETH, equivalent to 33.9% of the cryptocurrency’s supply, is a clear indication of the growing adoption and confidence in Ethereum’s transition to Proof-of-Stake (PoS) consensus algorithm.

As a crypto investor, I’ve noticed an exciting development in the Ethereum (ETH) ecosystem. The amount of ETH being staked within Ethereum 2.0 has reached a new record high, surpassing 47.38 million ETH. That represents approximately 33.9% of Ethereum’s total supply. This growth underscores the increasing interest and confidence in Ethereum’s future as a leading blockchain platform.

Based on information from the cryptanalysis company Santiment, this metric has significantly increased from approximately 11% of the cryptocurrency’s total supply being stored in the ETH2 Beacon Deposit Contract two years ago, to currently surpassing $140 billion.

As a data analyst, I’ve noticed an intriguing development with the Ethereum 2.0 Beacon Deposit Contract. Currently, it contains a record-breaking amount of 47.36 million ETH. This represents approximately 33.9% of Ethereum’s total supply. Compared to two years ago when it held about 10.9%, this is more than triple the percentage.— Santiment (@santimentfeed) July 10, 2024

In Ethereum 2.0, there has been a significant increase in the number of users who have locked up their ETH to become validators. This action helps secure the network under its new Proof-of-Stake consensus mechanism. Validators receive rewards for their participation, but it’s important to note that Ethereum continues to be a deflationary cryptocurrency due to an earlier upgrade. In this upgrade, transaction fees are no longer just paid out as fees but instead get burned.

The data from Santiment indicates a notable change in Ethereum ownership. Specifically, there has been a 23% rise over the past two years in the proportion of total Ethereum supply held in wallets with over 10 million ETH. This is significant because these large wallets include the Beacon Deposit Contract, which is associated with staking. In contrast, smaller and mid-sized wallets (excluding the Beacon Deposit Contract) have seen a decrease, implying a trend towards Ethereum staking.

According to recent reports, approximately 78% of Ethereum’s current supply is being held by investors who have owned their tokens for over a year. Consequently, these long-term holders represent a significant portion, controlling the vast majority of the cryptocurrency in circulation.

Long-term Ethereum investors are less inclined to sell their coins compared to those who recently acquired them. The increasing influence of long-term holders (LTHs) is considered a positive sign for Ethereum, indicating rising confidence among investors. With a substantial portion of the cryptocurrency being held by LTHs, there’s less Ethereum available in circulation, potentially reducing downward pressure on its price.

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2024-07-11 07:34