Ethereum Staking Hits 25%: Price Surge and High Returns Predicted

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Ethereum: Staking reaches 25% of total supply – Impact on ETH price?

Almost a year after the Shapella upgrade, validators have staked 25% of the total ETH supply. This keeps ETH deflationary, signaling long-term bullish potential. According to the Nansen dashboard, about 25% of the total Ethereum [ETH] supply has been staked. This equates to 30 million ETH. There were 936,849 validators involved in this process.

Start of full staking with Ethereum

Full staking with Ethereum began after the Shapella upgrade of the blockchain in 2023. Although this activity has been present since the merge in September 2022, the Shapella upgrade has made it more popular. Instead of miners, validators are now responsible for securing and maintaining the Ethereum network.

Validators prefer Lido

In addition to securing the network, validators stake ETH to earn a share of the reward. This reward typically ranges between 6% and 15% annual percentage rate (APR). However, it’s important to mention that some ETH holders may not be able to stake. This is because the minimum is 32 ETH, which brings validators 2 to 5 ETH per year. An analysis of the staking data showed that Lido Finance [LDO] remains the preferred staking platform for depositors. At the time of the press release, their market share in the staking sector was 31.8%.

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ETH target at $2,750

Interestingly, the ETH price rose to $2,435 on the same day that the staked amount reached 25%. This represents an increase of 3.19% in the last 24 hours. Data from Ultra Sound Money showed that Ethereum has maintained its deflationary status. At the time of publication, the supply change was -3342.67 ETH. Ethereum being deflationary means that the cryptocurrency no longer has an infinite supply. In the long term, this could be bullish for ETH, as high demand with low supply leads to a price increase.

Liquidity heatmap analysis

AMBCrypto also analyzed the liquidity heatmap. This attempts to predict the levels at which traders could get the best liquidity positions. On the upside, a liquidation around $2,520 could occur. This level could also serve as a resistance point for ETH. If bulls reverse this resistance, the next liquidation point could be around $2,750. Therefore, traders who want to go long on ETH with high margins should pay attention to their targets. On the other hand, shorts should watch for ETH’s movement around $1,855 and $2,100. If the aggression of the sellers subsides, high-level traders in this region risk being wiped out.

Sources: Nansen, Dune Analytics, Ultra Sound Money, Hyblock Capital.

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