Staked Ethereum (ETH) increased by 4.4M since Shapella upgrade

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Written on May 23, 2023

Reading time 2 minutes

Staking coins means locking them in a blockchain in return for passive yield.
The Shapella upgrade boosted investor confidence, allowing stakers to unlock their assets at will.
Ethereum price remains elevated today, surging 2.61% over the past 24hrs.

The number of staked Ethereum tokens within the Ether blockchain has increased since the leading smart contract project implemented the Shanghai upgrade (Shapella) on 12 April. Crypto traders stake/lock coins on blockchain platforms to earn rewards or passive yield.

Number of Ether Staked Has Surged By 4.4 Million Since Shapella Upgrade https://t.co/q9o8exvpUT May 23, 2023 at 09:26AM #CryptoCurrency

— Crypto Faucet Sites & Crypto News Tweets (@btcfaucets_2023) May 23, 2023

Glassnode’s latest data indicated that Ethereum traders deposited over 4.4 million tokens (for staking) since 12 April, totaling 22.58 million. On Tuesday, Bitfinex analysts stated that increased appetite for staking comes from large Ethereum investors, who prefer to earn passive income from their holdings rather than liquidating them.

The analysts added that this trend could persist as deflationary forces would potentially propel Ether’s prices. Meanwhile, the staking demand remains elevated even as the waiting time exceeds a month.

As of Wednesday, Ethereum holders interested in joining the validator team have a 36-day waiting period. While writing this news, over 50,000 potential validators queue. Staking the second-largest crypto offers 4% – 5% yearly yields.

Validators help in processing transactions and keeping data on blockchains. Ethereum requires a deposit of over 32 ETH to join the validator program. Meanwhile, the annual yield continues to attract Ether holders to become validators.

Shapella reduced staking risks

Market players started gaining interest in staking to earn passive rewards after the launch of Ethereum’s Beacon Chain in December 2020. However, the past three years haven’t been friendly for Ether stakers as they couldn’t withdraw staked assets at will.

That made them vulnerable to Ether’s price swings. However, the Shapella upgrade alleviated these challenges, allowing users to withdraw their locked tokens at will.

Ethereum price today

Invezz.com stats shows Ethereum on a bullish ride today. The second-largest crypto gained 2.61% over the past 24 hours, changing hands at $1,856.44 at press time. Stay tuned for Ethereum news to forecast the asset’s price direction in the coming sessions.