Saturday, December 9, 2023

Ethereum reaches another milestone on Beacon Chain.

More than 12 million Ether has been staked on the Beacon Chain, as per the data from the Ethereum Launchpad dashboard. CoinMarketCap reported a little over 120 million ETH in circulation supply. This suggests that 10% of all Ethereum has been staked.

However, concerns have been raised that the merge will result in an exodus from staking as Ethereum gets freed up from withdrawals. It could result in a major portion of it being sold to the market if stakers need to liquidate the asset. This could add downward pressure to Ether prices.

Staking began with the Phase 0 Beacon Chain launch in early December 2020. Back then, Ether was just priced at $600. Since then, the digital asset has gained 357% – even with the current market slump. Experts say ardent aficionados of the ecosystem, along with venture capital companies, are not likely to unstake their ETH and sell it.

Anthony Sassano, the Ethhub founder, highlighted that withdrawals won’t be enabled until at least six months after the merge. He believes the maximum is around 30,000 a day. The merge will bring in the proof-of-stake (PoS) consensus, meaning an end to the environmentally destructive mining. Analysts say this will make the market more bullish. Ether will become more environmentally sustainable with its drop in energy usage by more than 99%. This will prompt companies and lawmakers to see Ethereum in a better light.

Furthermore, the issuance may become inflationary as more ETH is being burnt by the upgrade introduced with EIP-1559. Ultrasound.Money tracker stated that 2.27 million ETH, worth around $6.25 billion, has so far been burned.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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