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Ethereum Staking Deposits Skyrocket After This Important Event

Published 07/04/2023, 06:55 AM
Updated 07/04/2023, 07:30 AM
© Reuters Ethereum Staking Deposits Skyrocket After This Important Event
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U.Today - According to a recent report published by Glassnode on-chain analytics company, stakers have become quite motivated recently, and more staking ETH deposits have begun flowing into the staking contract.

What has been driving them is the Shanghai hard fork implemented by the Ethereum team, which took place on April 12 this year.

The tweet shows that daily deposit activity hit a new high on June 2, by which time around 14,000 new ETH deposits were made. They contained nearly 410,000 ETH. In the meantime, Glassnode added, if you look at ETH deposit transfers to crypto exchanges, those now remain as they were before – roughly 30,000 ETH compared to inflows to the staking contract.

Overall, per the report shared by Glassnode, average daily deposits in June constituted 2,627.

Lido becomes leading ETH staking provider

Yesterday, Glassnode also published a report on the recent ETH staking activity, showing that after the Shanghai upgrade took place in April, Lido has been maintaining "an impressive dominance." Lido is a DAO (decentralized autonomous organization) that provides stakers with stETH tokens in exchange for Ethers they lock in the DAO.

According to the Glassnode report, stETH has become a preferred collateral asset with DeFi users by now.

After Shanghai, a lot of Ethereum was withdrawn from the ETH 2.0 staking contract, but then investors decided to stake their Ethers again - into DeFi platforms this time. After the aforementioned upgrade in April, the amount of ETH deposits rose from 460 to 8,108 per day.

This article was originally published on U.Today

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