Chief executive of Binance and co-founder Changpeng Zhao (aka CZ) has taken to Twitter to share his take on the historic peak reached by Ethereum the other day: the amount of ETH locked in the staking contract.
As Nansen blockchain data research company reported on May 9, the number of ETH coins locked and staked on Ethereum Beacon Chain has topped a total of 19,375,242 coins.
Nansen account stressed that all these coins are locked and will be out of circulation for a long time. Besides, they will ensure rewards to stakers on the Beacon Chain. The fact of the all-time high of locked coins shows the high interest of investors in the proof-of-stake algorithm adopted by Ethereum instead of proof of stake since the recent upgrade.
CZ of Binance clearly believes this is bullish, so he tweeted, "You know what follows?" as if he expects the Ethereum price to begin surging. That is what is usually expected when the circulating supply of a cryptocurrency shrinks, and it is often achieved by so-called "burning," which is basically also getting coins locked away.
Locked ETH at ATH. You know what follows? https://t.co/3xS8OoCfT9— CZ 🔶 Binance (@cz_binance) May 11, 2023
On May 6, the second largest cryptocurrency, Ethereum, surged to a local high, regaining the $2,000 level last seen in mid-April and, before that, on May 31 last year. Since last Saturday, however, ETH has already lost 9.2%, exchanging hands at $1,821.