Ethereum’s Beacon Chain, integral to the network’s shift to Proof of Stake (PoS), has achieved a landmark by accumulating more than 30.2 million Ether (ETH), valued at over $85 billion. This figure represents roughly a quarter of all ETH in circulation, with 943,974 active validators facilitating the process.
February Surge Propels Ethereum’s Growth
February saw a significant boost in Ethereum’s fortunes, with investor sentiment and participation on the rise. Within the first two weeks, the Ethereum 2.0 staking contract saw an influx of 600,000 ETH. Concurrently, Ethereum’s value soared, peaking at over $2,800—the highest for the year—with current trading figures hovering around $2,774.
As the amount of ETH locked in PoS contracts grows, so does the optimism for Ethereum’s prospects. The heightened level of staking not only reinforces the network’s robustness and performance but also diminishes the pool of ETH available for exchange trading. This scarcity, coupled with rising demand, is a recipe for potential price appreciation.
The adoption of the Beacon Chain has marked a pivotal phase for Ethereum, especially following its departure from Proof of Work (PoW) in September 2022. Validators participate by staking ETH, earning an annual reward rate of 4%. From a modest beginning with 21,063 validators, the network has seen a dramatic rise in participation, now boasting over 900,000 validators dedicated to network security.
Post the Shanghai update in April 2023, there were speculations about the possible withdrawal of staked ETH. Despite this, the amount of new stakes outpaced withdrawals in the subsequent week, demonstrating validators’ commitment to their staking investments.
Market Anticipates Impact of SEC’s ETF Decision on Ethereum
With Ethereum’s price edging towards the $3,000 threshold, the market is keenly awaiting the U.S. Securities and Exchange Commission’s (SEC) verdict on spot Ethereum ETFs. This decision could further constrict ETH’s market supply due to heightened institutional interest, potentially spurring price increases. The SEC is anticipated to greenlight a spot Ethereum ETF by May, with expectations high for its influence on the Ethereum market.
