Sign Up on MEXC
Highlights
- Total value of Ethereum locked up for staking is $121 billion.
- Currently, 27% of the ETH supply has been staked, which could be bullish for the crypto's price trajectory.
- The Ethereum ETF approval could greatly impact the price coupled with the supply crunch owing to massive staked ETH reserve.
Ethereum (ETH) registered a phenomenal surge lately owing to the enhanced approval odds of ETH ETFs. Moreover, signs of a supply crunch were noted owing to massive Ethereum reserve being locked up for staking. A supply shock could potentially drive the ETH price toward the $4,000 target.
Total Ethereum Reserve Staked Surpasses $121 Billion
According to Nansen, an on-chain data tracking avenue, 32.5 million ETH is currently staked. Moreover, this reserve constitutes approximately 27% of Ethereum’s total supply. At prevailing market prices, this staked ETH is valued at a staggering $121 billion.
To provide context, Nansen compared this figure to Solana’s total Fully Diluted Valuation (FDV), which stands at $103 billion. The substantial quantity of Ethereum being staked has sparked discussions about a potential supply crunch, which could have far-reaching implications for the market.
Nansen further elaborated on the situation in a post on X (formerly Twitter), highlighting the dual outcomes dependent on market demand. “If an ETH ETF gets approved and there is demand, either in anticipation or after approval then this would be positive,” Nansen stated.
They suggested that the approval of a Spot Ethereum ETF could significantly boost demand for the crypto, further constraining supply and potentially driving up prices. The above-mentioned trend was noted when the ETH price soared past $3,700 amid the ETF hype. On the contrary, Nansen noted that if there is a lack of demand for ETH, the current staking levels might not have a substantial impact.
Also Read: Breaking: WisdomTree Secures FCA Approval To List Bitcoin, Ether ETPs On LSE
ETH Price Trend
The Ethereum price has seen a slight decline and struggled to sustain above $3,700. At press time, the ETH price declined 2.19% to $3,705.54 on Wednesday, May 22. Whilst, the second largest crypto displayed a market capitalization of $446.16 billion.
Furthermore, the 24-hour trade volume for ETH slumped 42.02% to $27.51 billion. However, the ETH price outlook by analysts and major industry participants has been bullish. Standard Chartered analyst Geoff Kendrick reiterated the bank’s target of $8,000 for ETH by the end of this year.
Moreover, they also believe that the approval of Ethereum ETFs is imminent. In addition, the SEC has approached the ETF applicants, urging them to file amended 19b-4 filings. Additionally, the agency is expected to leverage the dynamics of ETH and staked ETH to ‘bypass’ the question of Ethereum’s status. Hence, Fidelity and Grayscale removed the staking feature of overnight.
Also Read: Ethereum Whales Missing In ETH Price Rally, Further Upside Possible?
- SEC’s Paul Atkins Pushes for On-Chain Capital Raising Without Uncertainty
- SEC Delays Decision On Staking For BlackRock’s Ethereum ETF
- SEC Delays Decision on Franklin Templeton’s Solana and XRP ETFs
- BNB Hits New ATH As Binance Partners With $1.6T Franklin Templeton
- Crypto Market, S&P 500 Rally as PPI Data Fuels Rate Cut Hopes
- Pump Price Forecast as $12M Buyback Fuels Scarcity — Is $0.01 in Sight?
- SUI Price Prediction as Mysten Labs Meets SEC Ahead of ETF Decision—Is $7.5 Next?
- Can Dogecoin Price Hit $1 as Derivative Volume Jumps Ahead of DOGE ETF Launch
- Bitcoin Price Prediction Eyes $150K as Trump Calls for Aggressive 100 BPS Rate Cut
- Solana Price Prediction: Can Nasdaq Listing and $94M Holdings Propel SOL Toward $400?
