Ethereum Staking Hits Record High, Exchange Balances Lowest in 6 Years

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Bittime - Ethereum (ETH) continues to show positive movement, with Ethereum (ETH) Stakinghitting a record high and balances on crypto exchanges dropping to their lowest level in 6 years. This shows increased investor confidence in ETH and its long-term potential.

What is Ethereum Staking?

Ethereum staking is the process of locking up a certain amount of Ethereum (ETH) to help secure the Ethereum blockchain network and earn rewards.

This is similar to the concept of bank deposits, where you lock up your money for a certain period of time and receive interest in return.

How Does Ethereum Staking Work?

Ethereum 2.0, the latest version of the Ethereum blockchain, uses a Proof-of-Stake (PoS) consensus mechanism .

In PoS, validators are selected based on the amount of ETH they stake, in charge of validating transactions and securing the network.

The more ETH that is staked, the greater the chance of being selected as a validator and getting rewards in the form of new ETH.

Also read: ETC Group Launches Ethereum Staking ETP: New Era to Make ETH Staking More Profitable?

Why Do People Stake Ethereum?

There are several reasons why people choose to stake Ethereum:

• Earn passive rewards: Staking offers a way to earn additional income from your ETH, without having to actively trade it.
• Supports the Ethereum network: Staking helps secure the Ethereum network and makes it more efficient.
• Confidence in Ethereum's future: Many investors believe that Ethereum has bright long-term potential, so they choose to stake ETH for a long period of time.

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ETH Staking Increases Rapidly

According to data from Nansen analyzed by Blockworks, more than 31 million ETH (worth $107.1 billion) has been staked as part of the Ethereum consensus. This number increased 7% in the last month.

More than a quarter of the total ETH in circulation has now been staked, which is more than double the amount of ETH held on crypto exchanges. This suggests that investors are increasingly choosing to lock up their ETH to earn staking rewards rather than selling it on exchanges.

Exchange Balance Drops to Lowest Level

Along with the increase in ETH staking, ETH balances on crypto exchanges declined to the lowest level since September 2018. Currently, only 24.3 million ETH (worth $42.38 billion) is held on exchanges, indicating that investors are withdrawing their ETH from exchanges for safekeeping. or stake.

Factors Driving This Trend

Some factors driving this trend include:

• ETH price increase: The price of ETH has increased significantly in recent months, encouraging investors to buy and hold ETH for the long term.
• Ethereum 2.0 Launch: The successful launch of Ethereum 2.0 increased investors' confidence in ETH and its long-term potential.
• The growing popularity of ETH staking: ETH staking offers an easy and safe way to earn passive rewards from stored ETH.

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Conclusion

Increased ETH staking and falling exchange balances indicate that investors are increasingly bullish on ETH and its long-term potential.

This trend will likely continue as Ethereum 2.0 develops and the popularity of ETH staking increases.

Ethereum staking is a way to participate in the Ethereum network and earn passive rewards. However, it is important to understand the risks involved before staking.

How to Buy Ethereum (ETH) on Bittime

You can buy and sell  Ethereum (ETH)  in an easy and safe way via  Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

Ethereum (ETH)  is available on Bittime with  the market pair ETH/IDR . To be able to buy  ETH/IDR  at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.

Learn  the complete guide on how to buy Ethereum (ETH) on Bittime . 

Monitor price chart movements  for Ethereum (ETH) , Bitcoin (BTC) , Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime.  

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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.