ETH has fallen below $2,000 for the first time since August, but at the same time, around 44.6 million $ETH have now been staked, bringing the share of total supply to a new high of about 36.5%. The lower the price goes, the more ETH gets locked up in staking. That’s right—we ETH defenders are just that amazing 🤡 Long-term holders, institutions, and staking service providers would rather earn yield through staking than sell at these low prices.
But we have to distinguish between two things here: a rising staking ratio means the amount of ETH immediately available to circulate may be shrinking. It doesn’t mean new buying is increasing. With continued outflows from ETFs and weak spot demand, it may not stop prices from falling—and it certainly doesn’t automatically mean the news is bullish.
Ajian also spotted another signal, though: an address linked to Erik Voorhees bought 23,091 ETH in a single day, worth about $47.36 million. As the founder of ShapeShift and a 13-year crypto veteran, his decision to buy amid such a panicked sell-off may not mean we’ve hit the bottom, but it does reflect the judgment of some value investors. We can keep an eye on whether the buying continues.
That’s all. DYOR
But we have to distinguish between two things here: a rising staking ratio means the amount of ETH immediately available to circulate may be shrinking. It doesn’t mean new buying is increasing. With continued outflows from ETFs and weak spot demand, it may not stop prices from falling—and it certainly doesn’t automatically mean the news is bullish.
Ajian also spotted another signal, though: an address linked to Erik Voorhees bought 23,091 ETH in a single day, worth about $47.36 million. As the founder of ShapeShift and a 13-year crypto veteran, his decision to buy amid such a panicked sell-off may not mean we’ve hit the bottom, but it does reflect the judgment of some value investors. We can keep an eye on whether the buying continues.
That’s all. DYOR