During May, the amount of Ether (ETH) that was staking reached a new all-time high of 2.96 million ETH. This is a number that represents the amount of ETH that a user has locked and participated in the staking process on the Ethereum network. This amount of ETH accounts for about 2.46% of the total supply of Ethereum.
After the Shapella upgrade was implemented on April 12th, there has been a significant increase in the amount of ETH being staking within a month. This upgrade allows validators to withdraw their staking ETH after two years. Initially, many believed that ETH’s lack of staking could cause a drop in the price of the Ethereum network. However, less than 1% of all staking ETH was sold after Shapella.
In the first week after Shapella, almost a million ETH was withdrawn from the Beacon Chain by validators. However, since the beginning of May, the amount of ETH involved in staking has surpassed the amount of ETH withdrawn. Currently, almost 18% of all ETH staking occurred in May.
The record increase in Ethereum staking in May is believed to be related to a number of factors, the most prominent of which is the story of the US debt ceiling, confidence in the US dollar, the collapse of the US dollar. banks and a high annual percentage (APR) offered for staking ETH. According to research analyst Brian McColl, these factors have influenced the popularity of Ether, and more and more users prefer to put their coins in ETH instead of keeping them in the bank.
The debt ceiling in the United States is a regulatory limit on the total amount of national debt that the U.S. Treasury can take on. It limits the amount the federal government can borrow to repay existing debt. The story of the US debt ceiling and events related to the collapse of banks may have had a negative impact on people’s confidence in the US dollar and the traditional banking system. . This may cause many people to look for other investment avenues where participating in Ethereum staking becomes more attractive.
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