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8.3% of Ethereum Supply Now Out of Market Circulation

Fri, 03/18/2022 - 14:45
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Arman Shirinyan
Almost 10% of total circulating supply is out of the market
8.3% of Ethereum Supply Now Out of Market Circulation
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More than 10 million ETH have already been moved from the circulating market supply as the staking feature of the second-largest cryptocurrency becomes more popular with every day, IntoTheBlock reports.

Eight figures of Ether are now deposited into the contract, which allows receiving stable income with a certain amount of Ether that gets locked for a minimum of a three-month period. As Coinbase previously reported to its users, after a full switch to a proof-of-stake network, the APY is going to increase from 5% to 12%.

Bitcoin (BTC) Price Analysis for March 18

In the last 90 days, the amount of ETH staked has grown by 20%, and 10% in the last 30 days alone. The increased risk-off tendencies also explained such a strong increase in the volume of funds locked in the contract on the cryptocurrency market.

How does the market benefit from Ethereum staking?

The main advantage that the market receives from the feature, which is rapidly gaining popularity among investors, is the decreased selling pressure that comes from the removal of coins from circulation for at least three months.

With fewer funds circulating on exchanges, it becomes significantly easier for the market to push the price of an asset further up even with less buying power.

600.7 Million SHIB Burned in 5 Transfers by Shiba Inu Fans, Here's What Happened

Previously, the introduction of a burning mechanism for Ethereum affected its movement on the market after the coin rallied by more than 70%. After the update took place on the network, over 1 million ETH worth almost $3 billion have been burned already.

At press time, Ethereum trades at $2,871 and gains 12% in the last four days as the market experiences a slight relief after Bitcoin spiked to $41,500 with the help of retail investors.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.