Key Points

Ethereum staking interest has spiked, with 47.36 million ETH locked in the ETH2 Beacon Deposit Contract.
Despite the increase in staking, active addresses and network growth for Ethereum have significantly declined.

The past few days have seen a surge in interest for staking Ethereum (ETH).

This comes in spite of a substantial decrease in network growth for ETH, even with a price surge.

Ethereum Staking Interest Peaks

The ETH2 Beacon Deposit Contract, responsible for staking deposits in Ethereum 2.0, has locked in an impressive 47.36 million ETH.

This accounts for a significant 33.9% of the total supply.

This value is over triple the amount staked two years ago, which was only 10.9%.

The surge in deposits suggests growing confidence in Ethereum 2.0 and its potential to transform the Ethereum blockchain.

A substantial portion of ETH is now locked in staking deposits, effectively reducing the circulating supply of ETH.

This could lead to price increases due to supply and demand principles.

Moreover, as staked ETH is locked for a certain period, it is less likely to be sold on the open market in the short term.

This could help decrease downward price pressure, especially during market volatility periods.

Despite the surge in ETH staking, overall interest in the Ethereum ecosystem has declined.

Data analysis revealed that the number of active addresses on the Ethereum network has significantly decreased over the past month.

Furthermore, this decrease in activity coincided with a drop in the number of NFT trades happening on the Ethereum network.

This suggests that despite the benefits of staking, fewer people are actively using the Ethereum network for other purposes.

This could be due to various factors, such as high gas fees, a lack of new applications, or a general bearish sentiment in the cryptocurrency market.

At the time of writing, ETH was trading at $3,087.00 and its price had increased by 10.91% since the 10th of July.

Despite the price surge, the overall trend for ETH remained bearish.

Additionally, the network growth for ETH significantly decreased, indicating that new addresses were losing interest in ETH.

Along with that, the velocity at which ETH was trading also declined, suggesting that the frequency of ETH exchanges had decreased.