Top Highlights
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Record Staking Demand: Ethereum staking demand has surged, with over 37 million ETH staked, indicating about 30% of the total supply now in a “one-way vault” for network security.
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Supply Confusion Clarified: The staking contract, which locks ETH temporarily, creates discrepancies in supply calculations, with up to 50.18% of Ether appearing staked historically before burns.
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Validator Queue Growth: The validator entry queue has reached record levels, with approximately 3.9 million ETH waiting to be staked, resulting in a 67-day wait time.
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Price at Bear Market Lows: Despite the staking surge, retail panic has driven Ether prices down to bear market lows below $2,000, with analysts noting that current market conditions are “boring” rather than expensive.
Ethereum Staking Address Hits Historic Milestone
Ethereum’s staking address now holds more than half of the total Ether supply for the first time in history. On Wednesday, on-chain analytics provider Santiment revealed that this significant milestone occurred despite ETH’s price dipping to bear market lows.
Currently, about 37 million Ether, roughly 30% of the total supply, is staked. Nevertheless, confusion around the proof-of-stake model often arises. Santiment described the staking address as a “one-way vault.” When users stake ETH, they lock it away to help secure the network. Consequently, staked Ether cannot be traded or spent until it is withdrawn.
Furthermore, when validators release their staked ETH, it re-enters circulation as newly issued coins rather than directly withdrawing from the vault. This mechanism causes fluctuations in the perceived supply, leading to reports such as the current 50.18% stake calculated based on pre-burned coins.
Santiment predicts continued growth in staked Ether, especially during downturns in trading activity. As demand for staking rises, the validator entry queue has also surged, with around 3.9 million ETH waiting to be staked. The current wait time is approximately 67 days, highlighting both the interest in Ethereum and the challenges in accessing the staking pool.
Despite these developments, ETH has faced significant pressure in the market. Panic selling by retail traders has driven Ether’s price below $2,000. As of Wednesday, ETH traded at around $1,970, maintaining resistance levels even as bearish sentiment looms.
Analysts note that, despite the price slump, Ethereum’s fundamentals remain strong. “Ethereum isn’t expensive right now; it’s boring,” commented analyst Merlijn The Trader. While the market may seem unexciting, periods like this often present opportunities for building positions.
With the proof-of-stake model becoming increasingly popular, Ethereum continues to demonstrate its unique value proposition. This development may provide a significant pathway to solving real-world problems while sustaining innovation in the cryptocurrency space.
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