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Ethereum (ETH) Price Primed for Upshoot as Staked Ethereum Hits New Milestone

Mon, 02/13/2023 - 08:01
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Godfrey Benjamin
Total Value Locked in Ethereum 2.0 deposit contract now tops 15.8 million ETH units
Ethereum (ETH) Price Primed for Upshoot as Staked Ethereum Hits New Milestone
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The total number of Ethereum (ETH) coins staked in the Ethereum 2.0 deposit contract has hit a new all-time high (ATH). According to data from crypto analytics platform Glassnode, the Ethereum staked in ETH 2.0 deposits is now pegged at 15,803,847 units, a figure that caps a steady uptrend that has been building since January 2021.

Ethereum transitioned fully into the proof-of-stake (PoS) consensus model last year as it looks to solve a series of long-lasting challenges.

These challenges include issues relating to its energy usage, scalability and network fees. While the Merge ushered in the PoS model and immediately solved the energy challenges, further protocol upgrades would help solve the other core challenges.

Ethereum Denies Claims That Merge Will Lead to Lower Gas Prices: Report

The soon-to-be-launched Shanghai Upgrade will make the locked Ethereum withdrawable, giving stakers the opportunity to gain access to their tokens. This massive sentiment in a whole new utility being attached to the Ethereum network is a major selling point that has likely helped push more Ether into the staking contract over the past few months.

Is Ethereum staking security?

The ATH in the Total Value Locked (TVL) in the Ethereum deposit contract was attained at a time when there is so much controversy about staking in the industry. With the United States Securities and Exchange Commission (SEC) going after Kraken Exchange last week, the debate about whether or not Ethereum staking is a security offering has mounted.

While top industry leaders like Cardano founder Charles Hoskinson have slammed the Ethereum staking model for locking users' coins indefinitely, expectations now mount that the SEC will go after more firms that offer staking services linked to the digital currency.

In summary, Ethereum as an asset is not a security as the ongoing lawsuit proceeding between SEC and Ripple has shown, and despite the legal brawl, more users seem to be more interested in staking the coin at this time. Should this staking continue, the coin's scarcity will mount, and this can positively impact the price in the mid-to-long term.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.