The amount of ETH staked grew 11% since the Shapella upgrade. More than 60% of strikers have suffered losses since locking their ETH to the network.
Users in the crypto space have shown significant interest in Ethereum [ETH] strike since the Shapella Upgrade went live last month. After a successful test of the withdrawal process, users have returned to withdraw their ETH.
According to a tweet from an investment expert, ETH locked with liquid staking providers hit an all-time high (ATH) in May, its fifth consecutive month of growth. The most impressive aspect of this trajectory was that staking gained momentum even though the price of ETH was still 60% lower than its November 2021 peak value.
With ETH still 60% off all-time highs, the amount of ETH wagered in dollars is at all-time highs in May.
Up and to the right. 📈
through @tokenterminal pic.twitter.com/dDsTZEjWhV
— Erik Smith, CFP® (@eriksmithcfp) May 29, 2023
Much is at stake
According to the Nansen dashboard, the amount of ETH staked on the Beacon chain has risen to 21.6 million ETH at the time of writing, a significant 11% growth from what it was during the Shapella upgrade on April 12 . Even during the last 24 hours, there was a net deposit of 47,000 ETH, suggesting that users had more confidence in the staking mechanism.
Source: Nansen
The interest in staking was also reflected in the growth of new deposit addresses. According to Glassnode, the number of new validators locking 32 ETH into the Ethereum smart contract increased significantly in May.
Source: Glassnode
Strikers show faith
Contrary to fears of a sell-off, ETH rose 13% in the first week after the upgrade, breaking the $2,000 level. However, broader market conditions ended the rally and ETH has been stuck in the $1800 region for the past three weeks.
As a result, more than 60% of strikers suffered losses since locking their ETH to the network, according to data retrieved from a Dune dashboard. Much of this strike occurred between $1,600 and $3,500 during the peak of the 2021 bull run.
A steady fall in prices could lead conservative strikers to withdraw their stakes and cash them in the market. However, their current trend was at odds with this story.
Source: Dune
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Will ETH see more interest?
In terms of demand for ETH futures, Open Interest (OI) par value has remained flat over the past few days, suggesting sluggish speculative interest for the second-largest altcoin by market cap, according to Coinglass. However, there has been a slight increase in the past 24 hours.
The surge attracted bullish leveraged traders to ETH as the number of long positions for ETH increased.
Source: Coinglass
This post Ethereum: Strikers, What Now After ETH’s Sluggish Price Action?
was published first on https://ambcrypto.com/despite-ethereums-sluggish-action-stakers-unwavered/
