Ethereum Deposits Increased ── Exceeds Withdrawals for the First Time After “Shanghai” | coindesk JAPAN | Coindesk Japan


Ethereum (ETH) holders are rushing to deposit their tokens with the network’s validators, pushing deposits to the highest level since the Shanghai (Chapella) upgrade in April.

According to data from on-chain analytics tool Nansen, more than 200,000 ETH have been deposited into the network since the beginning of the week, marking the first time deposits have exceeded withdrawals since the chapel. With this addition, the number of ETH locked for staking purposes has surpassed 19 million, representing approximately 15% of total circulation.

The influx comes as traders flock to memecoins such as Pepecoin (PEPE), straining the Ethereum network and pushing transaction fees to a 12-month high.

Ethereum deposits for staking purposes are booming. (Nansen)

Lido Finance, a protocol that issues tokens to replace staked tokens, currently holds over 6 million ETH. These alternative tokens can be used as liquidity in the broader decentralized finance (DeFi) ecosystem.

Shapella is a portmanteau of Shanghai and Capella, two major upgrades to the Ethereum network that took place simultaneously on April 12th, allowing investors to freely stake their ETH. For the first time, we provided a function that can be pulled out.

On a proof-of-stake blockchain like Ethereum, users stake (lock) cryptocurrencies (ETH in this case) to help secure and verify new blocks of data. These stakeholders can receive rewards in the form of tokens, making it a kind of passive investment strategy.

Platforms like Lido reward investors with a yield of 6.6% per annum. More complex strategies with ETH and other tokens can yield yields of up to 21%, according to Defillama data.

|Translation: coindesk JAPAN
|Editing: Toshihiko Inoue
|Image: Nansen
|Original: Ether Staking Deposits Top Withdrawals for First Time Since Shapella Upgrade

The post Ethereum Deposits Increased ── Exceeds Withdrawals for the First Time After “Shanghai” | coindesk JAPAN | Coindesk Japan appeared first on Our Bitcoin News.


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