Ethereum (ETH) Staking Hits Record High as Investors Trust Grows
- Glassnode reveals that there are now 27.4 million ETH in the ETH 2.0 depositor’s contract.
- These tokens have been staked by investors in the hopes of earning an annual return of 3.29%.
Ethereum (ETH) has remained a hot topic despite the general crypto market’s unrest. On August 14, a record number of ether staking deposits were made. According to information provided by Glassnode, there are now 27.4 million ETH in the ETH 2.0 depositor’s contract.
These tokens have been staked by investors as a demonstration of trust in the Ethereum network in the hopes of earning an annual return of 3.29%. Investors are willing to lock up significant sums for returns even if they cannot make short-term sales.
ENS Demand Surges
The fees charged by the Ethereum Name Service (ENS) have also increased significantly. The ENS set a new daily record of $235,000 in fees on August 13. Since September 11, 2022, it hasn’t been this high. During this upswing, the market value of ENS surged to $265,548,680 and the 24-hour trading volume increased by 16.86% to $6,149,796.
This uptick suggests there is increasing interest in securing one of these premium Ethereum names. As a result, according to crypto writer Colin Wu, the number of these custom addresses that simplify blockchain coding has surpassed the 2.6 million level.
Many have looked to Ethereum’s burn process as a hedge against inflationary pressures, but that mechanism is already exhibiting indications of slowing. The Ethereum burn rate was 570.54 ETH on August 12th, almost matching the record low of 498.16 ETH set in October 2022.
Further investigation suggests a large shift away from Ethereum’s Layer 1 (L1) alternatives toward Layer 2 (L2) ones, such as Arbitrum and Base. These alternatives handle transactions off-chain, relieving stress on Ethereum’s primary network. This has resulted in fewer transactions that add to Ethereum’s burn rate.
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