The amount of staked ether is about to reach an all-time high as the U.S. Ethereum Spot ETF advances. Julio Moreno, head of research at CryptoQuant, wrote in a report:

“The current number of pledged Ethereum coins continues to increase, reaching 33.3 million ETH, accounting for 27.7% of the total supply, which is close to the highest level in history.”

As transaction activity on the consolidation chain slowed, its token burn volume failed to keep up with the issuance rate, making ETH once again an inflationary asset, which weakened its ability to serve as a long-term store of value. According to data from ultra sound money, Ethereum’s annualized inflation rate over the past month was approximately 0.567%.

Julio Moreno said that the supply of ETH has increased again, although the growth rate is slow, but the "ultra-sound money" narrative has come to an end. The total supply of Ethereum reached its highest level since December 11, 2023.

Julio Moreno also pointed out that spot trading volume data shows that Ethereum’s liquidity may have been similar to Bitcoin, but in recent weeks, Ethereum’s spot trading volume has fallen to 80%-90% of Bitcoin’s. At the same time, according to data from CoinMetrics, about 12% of the Ethereum supply is used in smart contracts or cross-chain bridges connecting different blockchains. If the pledged Ethereum is added, the total supply is about 40% of the Ethereum. All are locked and not circulated in the secondary market.

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