According to data gathered by on-chain analytics firm Nansen, the amount of Ethereum being staked has surpassed the amount being withdrawn. As of April 17th, the volume of ETH being staked was 124,000 ETH, which exceeded the withdrawal volume of 64,800 ETH for the first time. Over the last 24 hours, 94,968 ETH was staked, while only 27,076 ETH was withdrawn. It’s important to note that the first round of withdrawals was primarily made up of partial withdrawals from Lido and old validators. It takes approximately three days to enter the withdrawal queue.
This news is significant for Ethereum investors and enthusiasts, as it suggests that more people are choosing to stake their ETH rather than sell or trade it. Staking is a process that involves holding a certain amount of cryptocurrency in a wallet and contributing it to the network in exchange for rewards. In the case of Ethereum, staking is used to help secure the network and process transactions. Those who stake their ETH are rewarded with more ETH for their contributions.
The increase in staking volume could be due to a number of factors, including the recent surge in the price of Ethereum. As of April 19th, ETH was trading at around $2,400, up from around $1,800 just a few weeks ago. This increase in price may have encouraged more investors to hold onto their ETH and stake it, rather than sell it for a quick profit.
Another factor that could be contributing to the increase in staking volume is the upcoming Ethereum 2.0 upgrade. This upgrade will transition Ethereum from a proof-of-work consensus mechanism to a proof-of-stake mechanism, which will require users to stake their ETH in order to participate in the network. Many investors may be staking their ETH now in anticipation of this upgrade, in order to be prepared for the transition.
Overall, the increase in staking volume is a positive sign for the Ethereum network and its investors. It suggests that more people are choosing to hold onto their ETH and contribute to the network, rather than sell it for a quick profit. As the network continues to grow and evolve, it will be interesting to see how staking volume and other metrics change over time.