Ethereum Staking Surges to 47 Million ETH During PoS Transition, Triples Supply in Two Years.

A comprehensive analysis by market intelligence firm Santiment revealed that more than 33% of the total supply of #Ethereum (ETH) is currently staked. This equates to more than 47 million Ether, worth approximately $147 billion at reporting time. This tremendous growth is three times the figures recorded just two years ago.

The mechanism behind this increase is based on the Ethereum 2.0 Beacon Deposit Contract, which reached an all-time high of 47.36 million ETH. This amount corresponds to 33.9% of the total supply, a significant jump from 10.9% two years ago. In essence, staking is when an investor locks up their crypto assets to support the operations of the blockchain and earn rewards in return.

Ethereum's strategic transition from proof-of-work (PoW) to proof-of-stake (PoS) mechanism in September 2022 was an important turning point. This transition allowed users to stake their $ETH ETH to verify transactions and earn rewards this way. Additionally, this change made the Ethereum network faster, cheaper and more environmentally friendly, reducing daily ETH issuance from 13,000 to 1,600.

Currently, #Ethereum is trading at $3,143, with a slight increase over the last 24 hours. As more investors turn to staking, it reduces the available supply in the market, creating deflationary pressure on Ether and could lead to potential price increases in the long run. Financial analysts are closely monitoring these trends, which provide valuable insights into Ethereum's market dynamics.

The rapid growth of Ethereum staking, fueled by the shift to proof-of-stake, represents a significant leap forward for the blockchain world. Considering that more than a third of its total supply is staked, its implications for market dynamics and technological advances are profound and offer a promising glimpse into the future of decentralized finance and blockchain innovation.