In the current market structure, the price of Ethereum continues to evolve in a direction distinct from the performance and fundamentals of its network. While the price of ETH struggles to initiate a major rally, the network is operating at a remarkable pace, surpassing previous all-time highs in most aspects of the blockchain, such as staking.
No more Ethereum locked up
Even in today’s volatile crypto landscape, the supply dynamics of Ethereumthe second largest cryptocurrency asset, is experiencing a quiet but significant change. Currently, ETH staking is growing exponentially, leading to a tightening supply as more ETH is locked up.
Milk Road, market expert, declared that ETH is intentionally becoming harder to access amid the strong growth of its staking ecosystem. The chart shared by Milk Road shows that ETH Staking has now reached a new all-time high, with millions of altcoins currently expected to be locked.
As more tokens are locked validator contractsan increasing percentage of Ethereum’s total supply is essentially being removed from daily circulation. The supply of ETH taken through staking has never been higher, capturing over 30% of the total circulating supply.
This demonstrates a growing confidence in staking as a long-term yield strategy and a deeper commitment to the security offered by the network. Meanwhile, the Ethereum network is now secured by approximately $120 billion in ETH staked.
In addition to being removed from active circulation, Milk Road highlighted that this supply is also being removed from crypto exchanges. When the bet increases, and supply decreasesMlik Road said that this trend is a positive signal for long-term price appreciation, reinforcing the expert’s conviction in ETH to rise.
A surge in ETH network activity to new highs
On-chain activity has seen similar growth, reaching historic levels. Crypto-tice reported that Ethereum network activity is at an all-time high, highlighting blockchain’s growing function as a settlement layer for cryptocurrencies and financial operations.
The network’s growth is seen among new wallet addresses, among which more than 393,000 new wallets were created in a single day, reaching the highest level ever recorded for the 7-day average of daily wallet creation. Such an increase in activity is notable not only for its scale but also for its tenacity, despite continued market volatility.
It should be noted that these types of growth are subtle, as they do not appear at the peak and the momentum gradually picks up. However, when it appears, it is accompanied by a slight uptick in adoption beneath the surface; a clear example of how increasing demands follow a expansion of use.
At the time of writing, the ETH price was trading at $3,119, demonstrating a decline of almost 3% over the past 24 hours. Its trading volume is also showing a bearish performance, falling more than 16% over the past day.
Featured image from Pxfuel, chart from Tradingview.com
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