- A staking % of this magnitude might cause a severe shortage of Ethereum on the market.
- There is a scarcity signalling around 10% of Ethereum volume on crypto exchanges.
More than 28 percent of Ethereum (ETH) has been staked, marking a significant milestone. Glassnode and Cryptoquant.com reports that 28% of the entire ETH is now staked. There is a scarcity signalling around 10% of Ethereum volume on crypto exchanges.
According to Leon Waidmann, Head of Research at the non-profit Onchain Foundation, the wider crypto sector on X has not yet really grasped the significance of this development.
Supply Crunch Anticipated
It should be noted that a staking percentage of this magnitude might cause a severe shortage of Ethereum on the market. A supply problem is imminent if this continues. If this materializes, Ethereum may be well on its way to the $4,000 mark that many had anticipated.
Moreover, the entire amount of Ethereum staked in May was 32.5 million ETH, which is equivalent to $121 billion. Also, this reserve made up around 27% of Ethereum’s total supply at the time, according to statistics from on-chain data monitoring service Nansen.
The SEC had not yet given its clearance to any companies planning to create spot Ethereum ETFs at the time. Since this is the case, Nansen made the observation that it would be optimistic if an ETH ETF were to get approval and subsequent demand was high.
The experts at Nansen appeared to be in agreement that if a Spot Ethereum ETF were to be approved, it might greatly increase demand for ETH. This, in their view, will further limit supply and may cause prices to rise.
After months of waiting, the spot Ethereum ETF was approved on May 23. Trading began two months later, on July 23. Another indicator of scarcity is the 1% rise in the staking volume.
Highlighted Crypto News Today:
Peter Schiff Blasts Bitcoin Advocates Over Flawed US Debt Solutions
