302,000 Ethereum tokens ETH are now staking. cryptocoin.comIn , we look at what this means for pioneering altcoin project ETH. Ether (ETH) worth $800 million will reportedly be locked in the next few weeks.
Massive Ethereum to be locked
The staking feature of Ethereum (ETH) has reached another milestone, showing that most of the cryptocurrency community is interested in the new feature that the second largest cryptocurrency will bring to the table. According to the metric, the number of coins in staking queues is now at 302,000 ETH. In other words, the value of the coins in this situation seems to be equal to 800 million dollars. A staking queue is a set of staking-ready wallets waiting for activation. Such a rapid increase in the volume of funds in the queue has never before occurred in the market.
How does staking in the context of ETH in the second position by market cap affect the market? First of all, ETH staking locks a certain amount of Ether for at least three months. With more funds locked into contracts, less selling pressure will fall on the cryptocurrency market. Aside from declining cryptocurrency production, even the short-term lockdown of cryptocurrencies will help Ethereum (ETH) become deflationary.
Ethereum’s market performance
But while the first months and even years of Ethereum staking will play in favor of the currency and its ecosystem, the 12% APY rewards will put pressure on the market. When most funds are unlocked and there is an unpleasant market performance, investors will decide to take profits to cover their losses. After four months of trading after hitting an all-time high, Ethereum (ETH) has lost more than 40% of its value, putting massive pressure on investors who choose to hold or trade the second-largest cryptocurrency. Before consolidation, Ethereum (ETH)’s stake APY remains at around 5%, barely covering losses from devaluation of the asset. At the time of writing, Ether is trading at $2,757 and has lost 0.6% of its value in the past 24 hours.
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