Staked ETH Nears 14 Million As Ethereum Readies For Breakout

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Since the completion of the Ethereum merge, sentiment among the community has remained positive. There was no withdrawal mechanism coded into the hard fork, which meant there was no potential dump of millions of ETH in the market. What happened was that the amount of ETH being pumped onto the network was increasing, now approaching another important milestone for the network.

Bet around 14 million ETH

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By the time the merge was to be implemented, there were already over 13 million ETH on the network. This represents over 11% of the total circulating ETH supply that is being temporarily taken out of circulation.

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Now, less than two weeks after the merge was completed, Stake volume on the network is already increasing, Since September 15, more than 200,000 ETH are at stake on the network. This has brought the total staked ETH to 13.979 million, leaving less than 27 ETH left for the network to reach the 14 million mark. This means that the addition of one more validator will increase the stake amount to more than 14 million, which means that more than 11.5% of the total supply of ETH is now at stake.

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Ethereum (ETH) Price Chart from TradingView.com

The accelerated rate of staking speaks volumes about the support that Ethereum has received. Even though there are those who have lamented the network’s move to Proof of Stake, the network’s improved capabilities point to it being the right direction for it.

Ethereum Wants Another Breakout

The crypto market is going through a crash, but there has been some meaningful correction in the mean time. One of the cryptocurrencies that continues to show great promise even through this bear market is Ethereum, and it has everything to do with ETH staking.

As more ETH is being staked on the network and there is no withdrawal mechanism, these ETH are being taken out of circulation and essentially reducing the supply. The issuance of ETH is also down 98% since the merge, which means that the supply of ETH is decreasing day by day.

All of these point to an impending supply squeeze. Considering the fact that ETH continues to show an accumulation trend and is forming support at $1,300, a breakout towards $1,500 is more likely at this point, as more investors are moving their coins out of centralized exchanges. As seen in the last 7 days. , the supply will harden, causing the value of the cryptocurrency to balloon.

Featured image from Business 2 Community, charts from TradingView.com

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