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What happened?
The Ethereum network has reached a record high in staking, with 34.65 million ETH locked on the Beacon Chain. This significant milestone represents nearly 29% of the total circulating ETH supply being staked, indicating strong confidence in the network. The price of ETH also surged to a 12-day high, but faces resistance around $2,700 as momentum shows signs of slowing.
Who does this affect?
This development impacts Ethereum holders, investors, and the broader crypto market. Institutional investors, particularly those involved with BlackRock’s ETH Trust, play a crucial role as they show sustained interest through continuous inflows. Additionally, users and potential adopters of Ethereum can be influenced by changes in confidence and liquidity in the market.
Why does this matter?
The increase in ETH staking signifies a tightening of liquid supply, which can exert upward pressure on prices in the market. Institutional demand, as evidenced by BlackRock’s inflow streak, could lead to more mainstream adoption and acceptance of Ethereum. However, with current resistance at $2,700, the market will need further catalysts to break through and sustain a new bullish trend.
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