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Staked Ethereum Not Withdrawable
Despite ETH’s price falling by 51% year-over-year, the total quantity of Ethereum, or ETH staked on the network prior to its significant Merge upgrade has more than quadrupled in a single year. In a year, staked Ethereum more than doubled from 6.5 million to 13.4 million, accounting for almost 11% of the cryptocurrency circulating supply, according to a report. It should be noted that Ethereum which has been staked is now not withdrawable; however, unlocking will begin in 2023 following the Merge.
Arcane Research claims that when withdrawals are enabled, the yield play connected with staking Ethereum may be the safest macro play since stakers are compensated for verifying transactions and assisting in network security. On September 15, the Ethereum Merge, which outlines the network’s existing mainnet combining with the Beacon Chain’s PoS mechanism, is anticipated to take place. This would pave the way for further scaling enhancements like sharding.
The Price may Dive to $1,000
As validators will secure the network by staking their ETH holdings in place of miners, the change is anticipated to lower Ethereum’s energy consumption by 99.95%. To operate block-producing nodes and get staking payouts, stakers require at least 32 ETH. Several businesses, notably exchanges, which permit users to stake less than the 32 ETH required to become a validator, make ETH staking more accessible.
The business highlighted that higher liquidity for staking positions will lead to more desire to stake. The option to withdraw is a significant de-risking event that should result in a net rise in the demand for staking. However, some analysts predicted that after stakers were allowed to unstake their funds, there would be a massive sell-off event. Ethereum’s price may dive near $1,000 for the first time in two months, with dramatic price fluctuations in the second-largest cryptocurrency ahead of its highly awaited Merge update, according to various sources.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
