While buying interest for Ethereum Perhaps losing momentum, the staking ecosystem has seen significant growth in recent months. After a period of steady increase, the amount of ETH locked in staking contracts has reached a critical point that could impact the market outlook.
More than half of Ethereum is now staked
EthereumThe price of fell below the $2,000 mark once again by the end of Wednesday. During the price decline, the network appears to have reached a historic inflection point, as evidenced by the massive growth of the staking ecosystem.
In a wireEverstake, a leading and responsible validator, has outlined a crucial milestone for ETH that could play a role in shaping its future. ETH staking activity has just exploded, with more than half of the entire supply being locked in staking, marking the first time in its history. With the move to proof-of-stake, participation in Ethereum staking has increased steadily. However, its economic design enters a new phase when it exceeds 50% of the total supply.
Everstake’s report is solely derived from data from Santiment, a popular on-chain data analytics platform. Data from the platform shows that the proof-of-stake contract on Ethereum now controls 50.18% of the historical total ETH issuance. Beyond being a remarkable character, he represents a key step in the 11th history of the project. In other words, this implies that the majority of ETH is no longer circulating or active on the market.
When more than 50% of supply is stuck in staking contractsthe liquid supply decreases and fewer coins become available for trading. Such trends often inflame sentiment because they reduce selling pressure and create market sensitivity to new demand. At the same time, this development indicates the conviction of long-term holders.
Users are committed to securing the network rather than transacting amid short-term volatility. Everstake remains convinced that this is a structural change for Ethereum. This reduction in supply coupled with stable or increasing demand indicates robust price dynamics for ETH over time. “This does not guarantee an immediate pump, but it does change the basis on which the price is built,” the company said.
A market fallen to cold levels
After an analysis of the MVRV Z-Score, RVT and NUPL, Alphractal disclosed that the Ethereum Market the temperature is near cold levels. Specifically, this key indicator measures whether the market is overheated or oversold, providing insight into periods of high risk and times when asymmetry favors long-term positioning.
When it approaches zero or falls below, it indicates that the market has calmed down. Historically, readings below 0 typically precede a phase in which risk and speculation are eliminated, thereby increasing the potential for long-term accumulation even if prices decline.
These areas highlight periods of reduced unrealized profits, triggering balanced valuation and eliminating emotional excesses from the market. In the past, major phases of expansion have been preceded by extensive positions in cold zones, such as weakest participants gradually come out and stronger hands gradually accumulate.
Featured image from Pixabay, chart from Tradingview.com
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