Staked Ether Close to All-Time High as ETF Approval Nears

While the supply of ether is rising, the amount that is staked is close to all-time highs, CryptoQuant data shows.
Polymarket bettors are assigning a 90% chance to an ether exchange-traded fund being approved in the U.S. by July 26, but there are still several steps that must take place before one can trade.

As a researcher with extensive experience in the cryptocurrency market, I find it intriguing to observe the current trend of increasing ether (ETH) supply and record-high staked amounts. According to CryptoQuant data, while the ether supply is on the rise again, the amount that is being staked is near its all-time high. This development keeps the circulating volume in check, despite the overall growth in the total amount of ETH.With an Ether (ETH) ETF edging closer to becoming a reality in the United States, the quantity of Ether being staked is approaching a new peak. This increasing stake helps maintain a steady circulating supply, despite the fact that the overall Ethereum (ETH) amount is expanding once more.

In a recent note to CoinDesk, Julio Moreno, the head of research at CryptoQuant, reported that the amount of ETH staked in the network has persistently risen and currently hovers close to its record high, totalling approximately 33.3 million ETH or roughly 27.7% of the entire circulating supply.

The growing availability of the second largest cryptocurrency indicates its shift back to an asset that loses value over time due to inflation. This undermines its role as a reliable store of value. Strategies like staking and burning can help mitigate this issue. With staking, you lock up ether for a specified duration, while burning involves permanently eliminating a portion of transaction fees from circulation.

Staked Ether Close to All-Time High as ETF Approval Nears

As an analyst, I’ve observed that the Ethereum (ETH) supply is expanding once more, albeit at a leisurely pace. However, the hype surrounding ultra-sound money has lost its appeal. Currently, the total ETH supply stands at its highest point since December 11, 2023.

Moreno indicated that based on trading volume data from spots, ether’s (ETH) liquidity may be comparable to that of bitcoin (BTC). Specifically, ETH spot trading volume has accounted for 80-90% of Bitcoin’s in recent weeks.

Approximately 12% of Ether’s total supply is currently employed in smart contracts and inter-blockchain linkages, according to CoinMetrics data. Combined with the staked tokens, approximately 40% of this cryptocurrency remains immobilized and not subject to active trading transactions.

Path to the ETH ETF

The competition to introduce an Ether exchange-traded fund (ETF) is intensifying, with many contenders vying for the title. According to wagers placed on Polymarket, these ETFs are predicted to commence trading prior to July 26.

More recently, Invesco and Galaxy disclosed they intend to levy a management fee of 0.25% for their prospective spot Ethereum ETFs. This is marginally greater than the 0.20% management fee charged by VanEck.

As a crypto investor, I understand that the Securities and Exchange Commission (SEC) plays a crucial role in our market. Before we can dive into trading, they must first review and provide feedback on the ongoing applications. Once their feedback is received, issuers will need to file final amended forms, which should include fee information and other necessary details for the transactions to be completed.

On the platform Kalshi, users estimate that there is a 65% probability that ether will surpass bitcoin‘s performance. However, they hold a strong conviction of 95% that ether will not reach a new record high prior to bitcoin.

2024-07-11 11:34

Staked Ether Close to All-Time High as ETF Approval Nears

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