Ethereum (ETH), the world's second largest cryptocurrency by market capitalization, has been in the news for several positive reasons all month long. Over the past 24 hours, the digital currency has soared to an 11-month high of $2,137.45. With its bullish leaps, the cryptocurrency is up by 12.80% in the trailing seven-day period, lending credence to its steady growth post-Shapella Upgrade.
The upgrade, which was anticipated for months, has ushered in a new system that might further contribute to enhancing the overall valuation of the Ethereum blockchain. According to data insights from crypto analytics outfit Lookonchain, a good number of whale accounts have been restaking a sizeable quantity of Ethereum tokens that they withdrew when the Shapella Upgrade went live.
5.— Lookonchain (@lookonchain) April 17, 2023
Address"0xa8c6" withdrew 8,961 $ETH and transferred to address”0xD100” to re-staked.https://t.co/EWkWTZPGm0
Address"0x4B5E" withdrew 5,434 $ETH and re-staked 5,408 $ETH.https://t.co/GpYlc3C3ym pic.twitter.com/DlSbLQzsry
With this whale activity, the public's fears about a potential massive sell-off of Ethereum will not just be waved off but will also help reestablish a new scarcity through the locking of some of the tokens in circulation.
Ethereum has reestablished its stance as a protocol that is built both for utility and investment purposes. The ability to earn returns through staking has placed it as a favorite for top institutional investors outside the Web3.0 ecosystem.
Charting Ethereum's future
As it stands, Ethereum is about 57% below its all-time high (ATH) of $4,891.70, and by its current outlook, retesting this high appears to be a matter of when, not if.
The digital currency is set on a pedestal that can attract more institutional funds, and by virtue of its robust ecosystem, the cryptocurrency is guaranteeing network stability that can handle the new range of utility that the versatile PoS protocol now embodies.
Although staggering amounts of Ethereum moved on-chain during the Shapella Upgrade, the new staking approach will offer the needed stability that can help secure ETH's release.