Ethereum (ETH) is on the cusp of a major event with the highly anticipated launch of spot ETH ETFs expected on July 4th. This has fueled speculation of a significant price surge for the world’s second-largest cryptocurrency. However, a lingering question hangs in the air: will this renewed interest in ETH translate to a resurgence in staking?
Ethereum’s much-celebrated switch to proof-of-stake in 2023 introduced a novel yield-generating mechanism for ETH holders, a perk absent in Bitcoin’s proof-of-work system. Staking coin not only offered attractive returns but also granted partial governance rights, making investors active contributors to the Ethereum network. This wave of enthusiasm led to millions of ETH being locked into staking contracts.
Also Read: Ethereum ETF Boom: Q3 Launch Could Send Crypto Market Soaring 38%
However, the introduction of restaking in June 2023 threw a curveball. A significant portion of staked ETH began flowing out, a trend that commenced in May 2023. Interestingly, the approval of spot ETF applications on May 23rd seems to have triggered a shift in sentiment. The outflow of staked ETH has plateaued, with the number of validators (unique addresses holding at least 32 ETH) stabilizing around 116,480.
This pause in the decline of stakers suggests a cautious optimism. The potential price boom accompanying the spot ETF launch could reignite interest in staking, especially if returns remain competitive. Analysts will be closely monitoring the situation to see if the ETF hype translates into a revival of Ethereum’s staking ecosystem.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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