<\/p>\n
Despite last week\u2019s crypto market rout, on-chain metrics for the world\u2019s second-largest digital asset show signs of increasing resiliency.<\/p>\n
The introduction of the Shanghai-Capella fork in April has only increased demand for ether (ETH), bucking prior concerns<\/a> it would have the opposite effect on price. Instead, as others rightly predicted<\/a>, utility and demand have soared.<\/p>\n Total Value Staked for the asset has continued to rise, reflecting fundamental demand, Ho Chan Chung, CryptoQuant\u2019s head of marketing, told Blockworks. The figure has risen 5.7% month-over-month, data shows, from 26.3 million ETH to 27.8 million.<\/p>\n Other experts agree. According to Eric Vander Wal, product head of Ethereum layer-2 scaling solution Mantle Network, the \u201chealthy\u201d increase in staked ETH indicates positive sentiment.<\/p>\n \u201cThis development has led to a proliferation of products built around staking services, where receipts of staked ETH allow stakers to retain liquid capital,\u201d Wal said.<\/p>\n The growth in liquid staking tokens (LSTs) and related financial strategies, along with their integration with real-world assets, encourages investors to focus less on short-term volatility, Wal added.<\/p>\n ETH ended last week down 8.3% on August 20, following a bitcoin-led sell-off<\/a> that sent shockwaves through the market and sapped $1.5 billion<\/a> in that asset\u2019s open interest (OI). A rebound on Wednesday saw the asset rise 2% to $1,690.<\/p>\n Even still, Chung believes ETH is undervalued, with its current realized price sitting slightly higher above $2,000 when compared to its spot market value, data shows<\/a>.<\/p>\n At the same time, ether\u2019s Exchange Supply Ratio has fallen to its lowest level in five years. The ratio refers to the proportion of ETH held on exchanges compared to the total circulating supply.<\/p>\n \u201cThe declining exchange supply ratio and persistent staking commitment indicate not just resilience but a strategic understanding of ETH\u2019s intrinsic value,\u201d Chen Zhuling, founder and CEO of staking platform RockX told Blockworks.<\/p>\n \u201cThese factors seem to reflect a broader belief in Ethereum\u2019s long-term potential, a conviction that goes beyond mere speculation and sees through the fog of short-term volatility.\u201d\u00a0<\/p>\n Investors may be moving Ether off exchanges to hold in private wallets, a reflection of the belief in the asset\u2019s staking fundamentals rather than seeking out trading opportunities, Chung added.<\/p>\n It comes as two significant events took place earlier this month that could encourage more people to use the Ethereum ecosystem, fintech firm BitOoda wrote in a recent note.<\/p>\n PayPal, the American payments giant, introduced a new stablecoin<\/a> linked to the US dollar, issued on the Ethereum platform.<\/p>\n And Coinbase launched its mainnet for Base<\/a>, an Ethereum rollup based on the OP stack<\/a> \u2014 also viewed as a bullish catalyst for user adoption.<\/p>\n Get the day\u2019s top crypto news and insights delivered to your email every evening.\u00a0Subscribe to Blockworks\u2019 free newsletter<\/a>\u00a0now.<\/strong><\/p>\n Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can\u2019t-miss tweets and more from\u00a0Blockworks Research\u2019s Daily Debrief<\/a>.<\/strong><\/p>\n Can\u2019t wait? Get our news the fastest way possible.\u00a0Join us on Telegram<\/a>\u00a0and follow us on\u00a0Google News<\/a>.<\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Despite last week\u2019s crypto market rout, on-chain metrics for the world\u2019s second-largest digital asset show signs of increasing resiliency. The introduction of the Shanghai-Capella fork in April has only increased demand for ether (ETH), bucking prior concerns it would have the opposite effect on price. Instead, as others rightly predicted, utility and demand have soared. […]<\/p>\n","protected":false},"author":2,"featured_media":141690,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-141689","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/141689","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=141689"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/141689\/revisions"}],"predecessor-version":[{"id":146881,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/141689\/revisions\/146881"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/141690"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=141689"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=141689"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=141689"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Ether in custody<\/h2>\n
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