Ethereum Users Stake 28.9% of Supply, Signaling Confidence

Jaxon Gaines

New Onchain data from IntoTheBlock reveals that Ethereum users have staked 28.9% of all Ether supply, revealing long-term interest in the asset. Staking a crypto asset means locking it into a blockchain network, prohibiting it from being sold or purchased until it is unstaked. Staking Ethereum allows holders to reap long-term rewards and typically signals confidence and interest in the token.

IntoTheBlock revealed the new data in a post to X on October 8. According to the data compiler, the percentage of ETH staked is up over 5% from the start of the year. Additionally, over 15.3% of staked Ethereum has been staked for over three years. The latter is an even stronger signal of long-term confidence in the asset, which was likely rewarded after the launch of ETFs.

In March 2024, the entire crypto market saw a surge, with Ethereum reaching above $4,000. After a slight decline back to Earth, in the Summer, the SEC approved the launch of Ethereum ETFs. The launch further boosted Ether’s price. However, since that initial March climb, the asset is down 40%.

Also Read: Ethereum Whale Sells $11.7 Million ETH As Price Dips 10%

Ethereum has fallen 3% in the weekly charts but has gained 8% over the previous month. ETH has also climbed 45.3% since this time last year. According to CoinCodex analysts, Ethereum (ETH) will continue trading below $2,500 till early November. The platform predicts the asset will hit $2,541 on November 2, 2024. Hitting $2,541 from current levels will translate to a rally of about 6.32%.

The long-term confidence is a good sign for Ethereum, as it counters the recent bearish outlook on the asset. However, due to recent price falls, Ethereum has a way to go to reward those who staked the token looking for a reward.