Ethereum’s Staked Surge Sets New Record as Investors Flock to Beacon Deposit Contracts
In the wake of the implementation of the Shanghai upgrade, which streamlined the process of withdrawing staked Ethereum (ETH), a growing number of individuals are choosing to secure their funds in beacon deposit contracts. This trend is evident from the significant surge in staked Ethereum since the upgrade, resulting in the establishment of a new record.
In more specific terms, the quantity of Ethereum that has been staked has reached an unparalleled height, exceeding 25.8 million ETH.
According to recent data shared in a tweet by CryptoRank, a prominent blockchain and cryptocurrency exchange analytics platform, this substantial amount is currently valued at over $48 billion.
Surging Deposit Contract Balance Marks Milestone For Ethereum Network
After the much-anticipated upgrade that allowed validators to withdraw their staked tokens, the Ethereum (ETH) network has achieved a noteworthy accomplishment in its deposit contract balance due to the growing interest in staking.
Specifically, since April 12, users have deposited more than 4.4 million ETH, driving the deposit contract balance beyond $40 billion following the implementation of the Shanghai upgrade. These statistics were reported by the cryptocurrency analytics platform CryptoRank on May 23.
It is important to note that the balance of the Ethereum deposit contract surpassed the $40 billion milestone in late May. This significant surge indicates a noticeable upward trend following the introduction of a critical feature that was missing during Ethereum’s transition from the proof-of-work (PoW) to the proof-of-stake (PoS) consensus mechanism after the Merge upgrade.
Analyzing Ethereum’s Price Performance
As of the latest data on June 30th, Ethereum was being traded at a price of $1,885.63. This signifies a 2.08% rise in the past 24 hours, a 0.24% increase over the previous seven days, and a 0.80% upward movement based on its monthly chart.
According to a recent report by Finbold on June 27th, it was emphasized that the wealthiest Ethereum addresses outside of exchanges have been augmenting their holdings, while the top exchange addresses have reached record lows, approaching levels observed during the initial phase. This trend indicates concerns related to potential legal actions targeting cryptocurrency exchanges.
Significantly, after the US Securities and Exchange Commission (SEC) initiated legal proceedings against cryptocurrency trading platforms Coinbase and Binance, there has been a noticeable shift of digital assets moving away from these exchanges. This includes Bitcoin (BTC), which is a prominent asset in decentralized finance (DeFi).
Investors are now seeking alternative options for storing and growing their digital assets, and Ethereum’s beacon deposit contracts have emerged as a trusted option for passive income.
The surge in staked Ethereum and the growing confidence among investors highlight the increasing appeal of Ethereum’s proof-of-stake mechanism, which offers rewards to participants who secure the network.
As the cryptocurrency landscape continues to evolve, it remains to be seen how these trends will shape the future of Ethereum and other digital assets. However, the current developments suggest that beacon deposit contracts are gaining traction as a reliable choice for investors looking to generate passive income while contributing to the security and stability of the Ethereum network.