ethereum bulls might be struggling to gain momentum at press time, but other on-chain data points to interesting developments. While eth is trading above $2,400 but capped by determined sellers, data from IntoTheBlock shows that nearly 30% of all eth in circulation has been staked.
Over 34.4 million eth staked in 9 months
As of October 8, IntoTheBlock analysts x.com/intotheblock/status/1843568536092061914″ target=”_blank” rel=”noopener nofollow”>note that 28.9% of all eth has been staked. At this level, more holders are committing to binding their reserves. The figure has increased, up from 23.8% recorded in January 2024. More than 15.3% of eth has been staked from this amount for over three years.
Related Reading: Dogecoin Set for Another Monumental Surge, New All-Time High Incoming?
ethereum changed the proof-of-work consensus algorithm in September 2022, officially moving to a proof-of-stake network like Cardano. The migration allowed the platform to remove power-hungry miners who were replaced by validators.
ethereum Parallel Data ethereum.org/en/staking/” target=”_blank” rel=”noopener nofollow”>sample that over 1 million network validators have cumulatively locked over 34.4 million eth. Each validator earns a 3.3% APR, a non-compounded annual return that falls based on the amount locked.
All network validators must lock at least 32 eth and operate a node that ensures the network runs every day of the week without downtime. There are penalties for validators who collude to, for example, confirm invalid transactions or attempt to take over the chain in a majority attack.
The fact that ethereum is attracting more validators despite prices contracting from Q1 2024 highs of around $4,100 to as low as $2,100 in early August is an endorsement of ethereum's long-term prospects. the platform.
Currently, ethereum remains the second largest platform after bitcoin and the only other crypto project after bitcoin to obtain the node for a spot ETF from the US SEC. Still, eth remains under pressure below $2,800, dashing hope.
EIP 7781 seeks to boost ethereum scalability
Beyond this, ethereum developers continue to build, seeking to improve the user experience and improve scalability. After the Dencun update in March 2024, a new ethereum/EIPs/pull/8931″ target=”_blank” rel=”noopener nofollow”>ethereum Improvement Proposal (EIP) 7781 It was floated recently.
The proponent seeks to further increase ethereum processing speeds by reducing slot times and increasing blob capacity. Specifically, the goal is to eventually reduce slot time from around 12 seconds to 8 seconds, which could increase transaction throughput by more than 30%.
If this proposal is approved, decentralized exchanges, including Curve or Uniswap, would benefit. It is noteworthy that users, due to the increased performance, will see the cost of mainnet transactions reduce. Although the proposal is welcome, solo players should purchase new equipment and strengthen their Internet connections.
Featured image from Canva, TradingView chart
