Ethereum (ETH) Staking Skyrockets as Almost 60,000 Unique Depositors Join the Network Ahead of Spot ETF Launch
- WBOYOriginal
- 2024-07-02 07:29:40491browse
On-chain data recently showed that the Ethereum staking has experienced significant growth over the last month. This undoubtedly presents a bullish outlook for the Ethereum ecosystem, which is already oozing with a lot of bullish sentiment heading into July.
On-chain data reveals that Ethereum staking has experienced a significant surge over the last month, adding a total of 59,894 new unique depositors to the network. This development comes as several parties anticipate the imminent launch of Spot Ethereum ETFs.
Highlights:
A chain analysis platform, CryptoQuant, has revealed that 59,894 new depositors have joined the ETH staking network since May 20. This marks a 4% increase in staking participation, which is considered bullish for ETH as it enhances the network's decentralization.
The increase in new depositors will also contribute to reducing ETH's already dwindling circulating supply, as these depositors have to lock up a substantial amount of ETH to become validators on the network.
Data from Dune Analytics shows that over 33 million ETH is currently locked up, representing almost 28% of Ethereum's total supply. This reduction in circulating supply is bullish as it helps minimize the impact of any potential selling pressure on the crypto token.
As demand for Ethereum increases, the positive effect of these locked-up tokens becomes more pronounced, as ETH's price will respond to the dynamics of supply and demand.
Analysis of ETH's distribution also reveals a bullish scenario. According to the market intelligence platform IntoTheBlock, about 78% of ETH's supply, including staked ETH, is held by long-term holders, those who have been holding the crypto token for over a year.
This indicates that Ethereum's supply is concentrated in the hands of individuals who are unlikely to sell their holdings anytime soon. It is especially relevant considering that institutional investors are expected to drive up demand for ETH once the Spot Ethereum ETFs begin trading.
These funds are expected to launch this month, and Balchunas recently suggested that they could start trading soon after July 8.
Previously, Balchunas and Seyffart had predicted that these funds could begin trading by July 2. However, Balchunas noted that the SEC had taken extra time to respond to the Spot ETF issuers, prompting them to adjust their timeline for the launch of these funds.
Recently, Bitwise's Chief Investment Officer Matt Hougan predicted that these Spot Ethereum ETFs could attract $15 billion in their first 18 months of trading.
At the time of writing, according to CoinMarketCap, ETH is trading at around $3,470, showing an increase of over 2% in the last 24 hours.
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