Influx of Stakers
Over the past month, Ethereum staking has witnessed a remarkable surge, with nearly 60,000 unique depositors joining the network. This growth aligns with the positive sentiment surrounding Ethereum as it approaches July.
Impact of Spot Ethereum ETFs
The surge in staking participation coincides with increased approval odds for Spot Ethereum ETFs by Bloomberg analysts. These funds have yet to begin trading, but their potential impact on ETH is already evident.
Reduced Circulating Supply
The increase in staking participation reduces Ethereum’s circulating supply, as depositors must lock up a significant amount of ETH to become validators. This decrease in supply creates a bullish outlook for ETH, as it limits potential selling pressure.
Long-Term Holders Dominate
Data indicates that approximately 78% of Ethereum’s supply, including staked ETH, is held by long-term holders. This concentration of supply in the hands of individuals unlikely to sell anytime soon further supports Ethereum’s bullish prospects.
Institutional Demand on the Horizon
The expected launch of Spot Ethereum ETFs this month is anticipated to increase demand for ETH from institutional investors. Bitwise’s Chief Investment Officer predicts that these funds could attract $15 billion in their first 18 months of trading.
Current Price
At the time of writing, ETH is trading at approximately $3,470, up over 2% in the last 24 hours.
