Ethereum Staking Attracts Increased Interest
The Shapella Upgrade in April 2023 significantly boosted Ethereum (ETH) staking interest, allowing for greater ETH stakes. The secure environment and the ability to withdraw assets at any time have increased the amount of ETH staked on the network.
However, investors have not given up on staking, with the annual financial return for validators falling from 5.2% in June 2023 to 3.64% as of writing. As of writing, there is only about an 11% liquid supply of ETH in exchanges, indicating a multi-year downward trend.
The staking of ETH and the reduction of its circulating number may decrease volatility, either bringing stability to the price’s volatility or pushing it upwards, making ETH more valuable.
(With inputs from Shikha Singh)
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