The Ethereum network is currently experiencing a surge in interest following the recent Shanghai update, which has expanded options for Ethereum (ETH) holders. This has resulted in an increase in the number of people staking their ETH on beacon deposit contracts, an indication of the growing trust in the Ethereum blockchain since the upgrade.
Since the Shanghai update, the amount of ETH staked has increased at a rapid rate. This growth recently reached a peak, breaking previous records and suggesting that Ethereum’s transition to proof-of-stake (PoS) has been positively received by the market.
New era for Ethereum
The amount of Ethereum staked has now reached an all-time high (ATH), surpassing 25.8 million ETH, which equates to a value of more than $48 billion, according to the latest data Shared by blockchain and crypto industry analytics platform, CryptoRank.
This development has caused quite a stir in the crypto community and provides insight into the evolving dynamics of the Ethereum blockchain. Just a month earlier, at the end of May, the Ethereum escrow contract balance had passed the $40 billion mark.
This upward move underscores the effectiveness of the new features introduced during Ethereum’s transition from proof-of-work (PoW) to the PoS consensus mechanism after the Merge update.
Also, youThe impact of the Shanghai Update on the Ethereum ecosystem has been profound. The increase in the Ethereum participation rate since the update is indicative of the growing interest and faith in the potential of the Ethereum blockchain.
This, in turn, is reflected in the success of the Shanghai upgrade and merger in aligning ETH with market expectations and needs.
While the influx of staked ETH is steadily increasing, Ethereum creator Vitalik Buterin recently expressed concern regarding the potential strain this could put on the network’s consensus. in a recent blog Post, He urged caution, stating: “Don’t overload the Ethereum consensus.”
Buterin went on to emphasize that using Ethereum consensus for various functions could present high systemic threats to the ecosystem and should be actively discouraged. Despite this cautionary advice, there has not been a decline in ETH staking activity, just a steady increase.
ETH Continued Uptrend
Over the past 24 hours, ETH has seen a slightly bullish trend, rising 1.4%. The second largest crypto asset by market capitalization has gone from trading below $1,700 earlier this month to trading as high as $1,890 at the time of writing.
Notably, the asset touched and traded above $1,900 today before pulling back slightly to a 24-low of $1,843. Meanwhile, ETH has seen over $20 billion added to its market capitalization in the past two weeks. ETH trading volume also increased during the same period, indicating increasing trading activity.
Featured Image from Shutterstock, Chart from TradingView
