a quarter of the total Ethereum (ETH) Data shows that supply is now firming up. Depending on the More than 30 million ETH (about $74 billion worth of cryptocurrency) is locked up, according to figures from blockchain data firm Nansen.
staking The process of “locking” digital coins or tokens to help keep a blockchain network running. Proof-of-stake assets like ETH require users to pledge their coins to the network by sending them to a specific blockchain address. Those who stake receive token rewards in the process.
Last year, the Ethereum network upgraded, users can easily withdraw their staked ETH. Since then, liquid staking protocols have boomed, allowing users to lock and withdraw their cryptocurrencies seamlessly.
As an ETH enthusiast eagerly wait Following the approval of an exchange-traded fund (ETF) bringing the second-largest digital asset to Wall Street, applicants are talking about staking in their offerings. Yesterday, investment firm Ark 21Shares amended its spot ETH ETF S-1 to address this practice.
“Patrons may from time to time stake a portion of the Trust’s assets through one or more trusted staking providers,” the filing reads.
However, staking remains controversial with regulators. The U.S. Securities and Exchange Commission has fined major cryptocurrency companies such as digital asset exchanges. Kraken and coinbase—It is believed that unregistered securities were sold through staking services.
The Ethereum network is also undergoing an upgrade. This week, developers Tenkun Upgrade on testnet. It is now scheduled to launch on mainnet by March 13th.
Developers claim Dencun will solve scalability issues in the slow and expensive network behind the world’s second-largest cryptocurrency, potentially allowing it to process more than 100,000 transactions per second in the future.
Editor: Andrew Hayward
