The Ethereum Merge was completed, and sentiment within the community is positive. No withdrawal mechanisms were coded in the hard fork. This meant the feared dump that would have resulted in millions of ETH being pumped into the market didn’t occur. The fact is, the amount of ETH being staked on network has continued to increase and now the network is close to another milestone.
Over 14 million people have stubbed ETH
More than 13 million ETH had already been staked onto the network by the Merge’s implementation. These ETH represented over 11% of total ETH supply that was temporarily taken from circulation.
Two weeks ago, the Merge concluded. The staked volume has already increased. There have been over 200,000 ETH staked to the network since September 15. The total amount of ETH staked has risen to 13.979million, with less than 27 ETH remaining for the network’s goal to hit the 14 million mark. This will increase the staked amount to 14 million. More than 11.5% is currently staked.
Ethereum’s support is evident by the rapid rate at which staking takes place. Even though there are those who have lamented the network’s move to proof of stake, the improved capabilities of the network point to this being the right direction for it.
Ethereum wants another Breakout
Although the crypto market is still reeling after the crash, it has made some significant recovery. Ethereum continues to be a promising cryptocurrency despite the bear market. This is due to ETH staking.
These ETH will be taken from circulation as more ETH is staked on the network. There is also no withdrawal mechanism. The Merge has also seen a decline in ETH issuance by 98%. Thus, the daily supply of ETH continues to decrease.
All these points point towards an imminent supply squeeze. Taking into consideration the fact that ETH has been showing strong accumulation and support formation at $1300, a break towards $1500 is possible at this stage. As investors shift their coins away from centralized exchanges (as was observed in the past 7-days), the supply will shrink, causing cryptocurrency prices to soar.
Featured image taken from Business 2 Community. Charts from TradingView.com.
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