At a time when the bitcoin price is crumbling, Ethereum remains on the rise and achieves a new historic record. After the Merge update and for the first time, Ethereum 2.0 contracts exceeded the total value of 30 million ETH. In plus information about all transactions confirm that the last announcement of the FED, the American central bank had positive effects among investors. But the question is what will happen in the medium and long term.
As the price of Ethereum began to lose its value, the announcement of the Fed’s pause on interest rates, encouraged investors to seek to liquidate their positions. And yet behind the radars, those who hold for long term of Ethereums placed an additional 126 million dollars in staking. This means that staking has reached a historic record.
Even before the latest FED meeting, Ethereum staking deposits have increased greatly. For the first time since the network moved to proof of stake consensus mechanism, the total Ethereum 2.0 value rose to 30 million ETH. According to transaction data made available by Glassnode, long-term Ethereum holders placed 856,709 ETH in staking since the beginning of the month. The precise data of the total value of ETH 2.0 contracts reached 29.23 million ETH at the end of August. And during closing on September 20, the figure rose slightly above 30 million with this sum of 30.09 million ETH.
It must be said that the growing interest of investors in staking confirms indeed that they have confidence in the viability of the Ethereum network. And like more than 48.6 billion are now staked on the Beacon Chain, therefore this indicates that more than 25% of the 120,227,795 ETH in circulation are now locked in smart contracts. The first answer to what we owe to expect in the medium term is that this massive rush towards staking services could be the cause of a greater increase in the Ethereum price.
So to return to the explanation of the value of ETH 2.0 contracts as a reminder, it represents the amount of ETH coins deposited in the contracts of staking of the Ethereum 2.0 network. An increase in staking deposits improves significantly improve the security of proof of stake (PoS) consensus protocols.
The question everyone is asking is that the Fed’s decision sounds like a gift for Ethereum. And yet, according to data available in all transactions, Ethereum staking deposits begin their rise from the 17th September just a few days before the announcement of the FED decision. It’s necessary know that Ethereum staking requires a minimum deposit of 32 ETH which is equivalent approximately $52,000. As it is expensive most investors are either whales or institutional investors. In reaction to the FED’s announcement, whales staked an additional 77,800 ETH. This sum of ETH is the equivalent of $126 million. This confirms to us that this category of investors take staking as a more profitable alternative to vehicles investment of TRADFI. Confidence will then grow over time term.
It was at the time of the Shappella update on April 12 that staking withdrawals ETH 2.0 have been activated. Since that day, variations in withdrawals and deposits provide key insights into market dynamics. The Ethereum price could touch the $3,000 mark very soon. Last July, more precisely on the date of the 14th, the price exceeded $2000 and since this period 3.5 million ETH coins were withdrawn from circulation and placed in staking in Ethereum 2.0 contracts.
Even if this situation is temporary, it can cause the ETH price to rise towards $3000. All transactions viewed that reveal an idea of the average price purchase of coins in circulation clearly announces the drop in supply. And so by therefore, it can absolutely reach $2100. So if Ethereum manages to crossing the $2100 mark, it will easily progress towards $3000.
It is quite clear that the 9.06 million investors in both whales and institutional investors purchased 37.15 million ETH at an average price of $2160 constitutes the largest group of ETH holders. In this vein if the value of Ethereum staking contracts continues to increase, well the asset will easily head towards $3000.
