Ether Staked Volume Exceeds Withdrawals

Ether staked volume surpasses withdrawal numbers, indicating investor confidence in the Ethereum network. Investors are choosing to hold their ether rather than withdraw, demonstrating a commitment to the long-term growth of the ecosystem. This trend has positive implications for the future of decentralized finance and cryptocurrency as a whole.

Ethereum’s Latest Upgrade: Shapella Enables Withdrawals on Proof-of-Stake Blockchain

Ethereum, the world’s second-largest cryptocurrency, implemented a long-awaited tech upgrade called “Shapella” on April 12. This upgrade enabled withdrawals for the first time from the proof-of-stake blockchain. A week later, the amount of staked Ether has now exceeded the number of ETH being withdrawn for the very first time.

According to the on-chain analytic platform Nansen, withdrawal requests have taken a backseat while Ether is being staked at a fast pace. As of April 17th, the amount of ETH staked was recorded to be 124,000. This is almost double of ETH withdrawal which stands at 64,800.

Whale accounts are also contributing to the trend. Reports suggest that a number of whales have started restaking a notable quantity of ETH that they withdrew when the Shapella upgrade went live. Whale restaking further eliminates the previous concerns about a potential sell-off as a result of market flooding with millions of unlocked ETH. Additionally, the locking of the tokens creates scarcity.

It has now over 18.6 million ETH, worth $36 billion, locked in staking contracts. It is predicted that more people will engage in staking, seeking to leverage the network’s high-yield rates, in the coming months, resulting in scarcity of ETH.

The trend of Ethereum staking has now become particularly relevant, with the world’s largest altcoin registering an 11-month high above $2,100. Even outperforming Bitcoin to record the new local peak, the news of the implementation allowed Ethereum to rise to new heights.

According to a report, Lido Finance accounted for 30.9% of Ethereum depositors, followed by Coinbase with 12.7%, Kraken with 6.9%, and Binance with 5.5%, among others. Staking has become increasingly popular in the Ethereum community with more people taking advantage of the high yielding interest rate of 6% to 20%.

In conclusion, Ethereum’s Shapella upgrade has opened new doors in the world of cryptocurrency, allowing the community to take advantage of the network’s high yields. With more people entering the market and scarcity on the rise, we can expect staking to remain a popular option for many in the future.

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