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The total value of staked ether (ETH) continues to apace, reflecting positive signs of growth and stability for the world’s second-largest digital asset. <\/p>\n
Following Ethereum’s critical PoS upgrade in April, the amount of ETH that has been deposited to the ETH 2.0 contract now stands above 25.6 million, per Glassnode. date<\/a>,<\/p>\n That figure, worth some $48 billion, represents a rough 70% increase since the new year began, from around 15 million ETH ($28 billion) to current levels. Total staked ETH has effectively doubled<\/a> when viewed over a year-long horizon.<\/p>\n Yield on staked ether is currently<\/a> around 4.5%, paid in ETH.<\/p>\n At the same time, the total balance of ETH sitting on exchanges fell to its lowest level<\/a> in five years, dropping from around 22.5 million ETH at the start of 2023 to 15.3 million ETH \u2014 a 32% decline.<\/p>\n According to analysis from CryptoQuant, exchange outflows, as seen in the total number of ETH disappearing from exchanges, indicate a decline in sell-side pressure across the spot market.<\/p>\n Participants continue to bank on the value of the Ethereum network, with those holding the underlying becoming more hesitant to relinquish their assets as they anticipate future demand. <\/p>\n The increase in staking is coupled with gas prices \u2014 a measure of transaction activity \u2014 that have generally exceeded the rate at which ether becomes deflationary, and the total supply is expected<\/a> to contract this year by somewhere between -0.1 and -0.3%.<\/p>\n \u201cAs scarcity increases and demand grows, assets generally rise in price,\u201d Greg Moritz, co-founder at AltTab Capital told Blockworks via email.<\/p>\n The number of externally controlled accounts, or private keys, holding a non-zero<\/a> The amount of ETH also shot up to record highs on Tuesday, rising just above 100 million for the first time.<\/p>\n While not perfect, the metric analyzing an approximate number of active users on the network further illustrates a rising demand for the asset as institutions mull the implications of wider adoption.<\/p>\n \u201cWe’ve seen a very large uptick in interest from institutional capital and when the smart money is getting into an asset class, it’s because they too see the potential for strong growth,\u201d Moritz said.<\/p>\n Macauley Peterson contributed reporting.<\/em><\/p>\n Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter<\/a> now.<\/strong><\/p>\n Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief<\/a>,<\/strong><\/p>\n Can’t wait? Get our news the fastest way possible. Join us on Telegram<\/a> and follow us on google news<\/a>,<\/strong><\/p>\n<\/div>\n
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