On-chain data recently showed that the ethereum Staking has seen significant growth over the last month. This undoubtedly presents a bullish outlook for the ethereum ecosystemwhich is already exuding a lot of bullish sentiment heading into July.
Nearly 60,000 unique depositors join ethereum network
Data from on-chain analytics platform CryptoQuant shows that 59,894 new depositors have joined the eth staking network since May 20. Interestingly, this significant increase began around the time Bloomberg analysts James Seyffart and Eric Balchunas increased your chances of approval For him ethereum Spot ETF up to 75%.
This once again highlights the ethereum Spot ETF positive impact on eth, although they have not started trading. Thanks to these funds, the network has achieved a 4% increase in betting participation in just over a month. Higher staking participation is bullish for eth, making the network more decentralized.
Furthermore, the increase in the number of new depositors will also reduce the already dwindling circulating supply of eth, as these depositors have to lock a significant amount of eth to become validators on the network. Data from Dune Analytics shows that more than 33 million eth are lockedrepresenting almost 28% of Ehereum's total supply.
eth's supply side paints a bullish picture
A reduction in ethereum Circulating Supply It is a fundamental bullish factor as it helps reduce the impact of any potential selling pressure on the crypto token. The positive impact of these locked tokens also becomes more evident as demand for ethereum increases, as the price of eth will bow to the dynamics of supply and demand.
The eth distribution also paints a bullish picture for the crypto token. eth/deep-dive?group=ownership&chart=timeHeld&utm_campaign=Newsletter&utm_medium=email&_hsenc=p2ANqtz-9Wg5Ten1vA7FSEQyrDxUr73IiZEr2K5sSMEWXnM4lBpgOBTxg72gmifhf3lH4WQL5rIxPF1ad5MaazlVziwlhskU5Deg&_hsmi=313591765&utm_content=313591765&utm_source=hs_email” rel=”nofollow noopener” target=”_blank”>Data from the IntoTheBlock market intelligence platform shows that approximately 78% of the supply, including staked eth, is held by long-term holders, those who have been holding the crypto token for over a year.
This shows that ethereum supply is concentrated in the hands of people who are unlikely to unload their holdings anytime soon. This is significant, considering that institutional investors are willing to increase demand for eth once ethereum Spot ETF These funds are expected to begin operating this month.
Balchunas recently x.com/EricBalchunas/status/1806810886109331520″ rel=”nofollow” target=”_blank”>He suggested that these spot ethereum ETFs could begin trading shortly after July 8. Balchunas and Seyffart had previously predicted that these funds could begin trading on July 2. However, Balchunas noted that crypto/sec-announcement-crypto/#:~:text=What%20The%20SEC’s%20Latest%20Announcement%20Means%20For%20The%20Crypto%20Industry,-by%20Scott%20Matherson&text=A%20recent%20announcement%20by%20the,actions%20have%20had%20on%20it.” rel=”nofollow noopener” target=”_blank”>Securities and Exchange Commission (SEC) They had taken longer to get back to the issuers of the ethereum Spot ETF, so they had to change their timeline for the launch of these funds.
Matt Hougan, Chief Investment Officer at Bitwise ethereum/bitwise-cio-spot-ethereum-etfs/” rel=”nofollow noopener” target=”_blank”>recently predicted that these ethereum Spot ETFs could attract $15 billion in their first 18 months of trading.
At the time of writing, eth is trading at around $3,470, up more than 2% in the last 24 hours, according to ethereum/” rel=”nofollow noopener” target=”_blank”>data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
