In the current market structure Ethereum price It continues to move in a direction independent of the performance and fundamentals of the network. While the price of ETH has struggled to mount a large rally, the network is performing at an incredible pace, breaking previous highs in most aspects of the blockchain, such as staking.
More Ethereum is being locked.
Even in the ongoing cryptocurrency volatility environment, the supply dynamics of cryptocurrency are Ethereumthe second largest cryptocurrency asset, is undergoing a quiet but meaningful transformation. Currently, ETH staking is growing exponentially, with more ETH locked up, causing supply to become scarce.
Market expert Milk Road stated ETH is intentionally becoming more difficult to access as the staking ecosystem grows significantly. Here is the chart shared by Milk Road: ETH staking Millions of altcoins are currently expected to be locked, hitting a new all-time high.
While more tokens are locked Validator ContractA growing percentage of Ethereum’s total supply is essentially excluded from daily circulation. The supply of ETH secured through staking has never been this high, accounting for over 30% of the total circulating supply.
This means greater confidence in staking as a long-term revenue strategy and a deeper commitment to the security the network provides. Meanwhile, the Ethereum network is currently secured by approximately $120 billion worth of staked ETH.
Milk Road emphasized that in addition to being removed from active circulation, this supply will also be removed from cryptocurrency exchanges. When staking rises supply decreasesMlik Road said this trend is a positive sign for price growth in the long term and will further increase expert confidence in ETH.
ETH’s network activity surges to new highs
On-chain activity also experienced similar growth, rising to historic levels. cryptocurrency reported that Ethereum network activity Reaching an all-time high, it highlights the growing capabilities of blockchain as a payment layer for cryptocurrencies and financial operations.
Network growth is observed in new wallet addresses, with over 393,000 new wallets created per day, reaching the highest level recorded in the 7-day average of daily wallet creations. This increase in activity is notable not only for its scale, but also for the persistence it occurs despite continued volatility in the market.
It’s worth noting that this type of growth is subtle, as it doesn’t appear at peaks, and momentum is gradually regaining itself. But when it does show up, there’s a quiet surge in adoption beneath the surface. A clear example of how demand is growing Expanding usability.
At the time of writing, ETH price is trading at $3,119, down almost 3% in the last 24 hours. Trading volume is also showing weakness, decreasing by more than 16% from the previous day.
Featured image from Pxfuel, chart from Tradingview.com
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