Ethereum uptrend continues, staked ETH reaches new high.

The Ethereum network is currently experiencing a surge in interest after the recent Shanghai upgrade, which has expanded options for Ethereum (ETH) holders. This has resulted in more people staking their ETH in beacon deposit contracts, indicating growing confidence in the Ethereum blockchain since the upgrade.

Since the Shanghai upgrade, the amount of staked ETH has been increasing rapidly. This growth recently reached a peak, breaking previous records and suggesting that Ethereum’s transition to proof-of-stake (PoS) has been well-received by the market.

New Era For Ethereum

The amount of staked Ethereum has now reached an all-time high (ATH), surpassing 25.8 million ETH, equivalent to a value of over $48 billion, according to the latest data shared by blockchain and crypto industry analytics platform, CryptoRank.

This development has caused quite a stir in the crypto community and provides insight into the evolving dynamics of the Ethereum blockchain. Just a month earlier, in late May, the Ethereum deposit contract balance had crossed the $40 billion mark.

This upward movement underscores the effectiveness of the new features introduced during Ethereum’s transition from proof-of-work (PoW) to the proof-of-stake (PoS) consensus mechanism after the Merge upgrade.

Furthermore, the impact of the Shanghai upgrade on the Ethereum ecosystem has been profound. The surge in the Ethereum staking ratio since the upgrade indicates growing interest and faith in the Ethereum blockchain’s potential.

This, in turn, reflects the success of the Shanghai upgrade and the Merge in aligning ETH with market expectations and needs.

While the influx of staked ETH continues to rise, Ethereum’s creator, Vitalik Buterin, has expressed concerns about the potential strain this could put on the network’s consensus. In a recent blog post, he urged caution, stating, “Don’t overload Ethereum’s consensus.”

Buterin went on to emphasize that using Ethereum’s consensus for diverse functions could introduce elevated systemic threats to the ecosystem and should be actively discouraged. Despite this cautionary advice, there has been no decrease in ETH staking activity, only a consistent increase.

ETH Continuous Upward Trend

In the past 24 hours, ETH has seen a slightly bullish trend, up by 1.4%. The second-largest cryptocurrency by market capitalization has risen from trading below $1,700 earlier this month to trading as high as $1,890 at the time of writing.

Notably, the asset reached and traded above $1,900 earlier today before slightly retracing to a 24-hour low of $1,843. Meanwhile, ETH has added over $20 billion to its market cap over the past two weeks. ETH trading volume has also surged over the same period, indicating increased trading activity.

Featured image from Shutterstock, Chart from TradingView

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